NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Spatial Price Discrimination with Heterogeneous Firms

Jonathan Vogel

NBER Working Paper No. 14978*
Issued in May 2009
NBER Program(s):   ITI    IO

In this paper we present and solve a three-stage game of entry, location, and pricing in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique characterization of all pure undominated strategy SPNE without imposing restrictions on the distribution of marginal costs or the allocation of transportation costs between firms and consumers.

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