Сеньков Максим Игоревич
Single Product Firms Vs. A Supermarket: A Spatial Competition Model
Прикладная экономика и математические методы
I develop a model of competition between small downtown retailers and a supermarket. Variety-loving consumers are uniformly distributed across a one-dimensional city, which accommodates a shopping street composed of non-atomic retailing firms, and a supermarket. I aim to study competition between these two retailing bodies and how it affects the urban structure. Unlike Ushchev, Sloev and Thisse (2015), who work with a similar model involving a shopping mall instead of a supermarket, I focus on studying the consequences of internalizing cannibalization effects by the supermarket. I find that in case of low transport costs the supermarket will enter the market and hollow out of the downtown retail sector only if the product range expansion efficiency of a supermarket is high enough relative to the one of the downtown shopping street. If the transport costs are high enough, both centers of commerce coexist at equilibrium.
Текст работы (работа добавлена 20 мая 2016г.)