Research Article
Competitive Games Following Internet Retailer Entry
Seoul National University
Published: January 2004 · Vol. 33 No. 6 · pp. 1625-1645
Full Text
Abstract
We study a spatial competition model where there are two conventional sellers and one Internet retailer. The Internet retailer tries to enter the market where there are two brick-and-mortar stores. Compared with the conventional retailers that incur linear transportation cost to customer, the Internet retailer incur fixed transportation cost. This distinctive characteristic gives us a new form of Nash equilibria.
