Spatial competition between shopping centers

Antonio Brandao, Joao Correia-da-Silva and Joana Pinho

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: We study competition between two shopping centers (department stores or shopping malls) located at the extremes of a linear city. In contrast with the existing literature, we do not restrict consumers to make all their purchases at a single place. We obtain this condition as an equilibrium result. In the case of competition between a shopping mall and a department store, we find that the shops at the mall, taken together, obtain a lower profit than the department store. However, the shops at the mall have no incentives to merge into a department store (both sides would lose). It is the department store that has incentives to separate itself into a shopping mall (both sides win).

Keywords: Retail organization; Multi-product firms; Horizontal differentiation; Hotelling model (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2010-12
References: Add references at CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Spatial competition between shopping centers (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:394

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