Strategic Accessibility Competition
Research, Preprint, Book
- Publisher: Bologna: Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
R42 | L90 | Quaderni - Working Paper DSE | SECS-P/01 Economia politica | Accessibility Investment; Vertical Differentiation; Transport Costs | L13
We analyze the effect of competition in market-accessibility enhancement among quality-differentiated firms. Firms are located in regions with different ex-ante transport costs to reach the final market. We characterize the equilibrium of the two-stage game in which fir...