✦ LIBER ✦
Endogenous R&D spillovers and locational choice with discriminatory pricing
✍ Scribed by Claudio Piga; Joanna Poyago-Theotoky
- Publisher
- John Wiley and Sons
- Year
- 2004
- Tongue
- English
- Weight
- 102 KB
- Volume
- 25
- Category
- Article
- ISSN
- 0143-6570
- DOI
- 10.1002/mde.1137
No coin nor oath required. For personal study only.
✦ Synopsis
Abstract
We present a model of spatial price discrimination where R&D spillovers are endogenous as they depend on firms' location. We establish that both the distance between locations and R&D efforts are an increasing function of the transportation cost coefficient and show that there is a continuum of cases where firms will choose an intermediate location. The managerial implications from the model are discussed using examples of marketing behavior by Internet retailers. Copyright © 2004 John Wiley & Sons, Ltd.