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Endogenous R&D spillovers and locational choice with discriminatory pricing

journal contribution
posted on 30.05.2006 by Claudio Piga, Joanna Poyago-Theotoky
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.

History

School

  • Business and Economics

Department

  • Economics

Pages

104173 bytes

Citation

PIGA, C. and POYAGO-THEOTOKY, J., 2004. Endogenous R&D spillovers and locational choice with discriminatory pricing. Managerial and Decision Economics, 25 (3), pp.157-161.

Publisher

© WileyInterScience

Publication date

2004

Notes

This is Closed Access. This article was published in the journal, Managerial and Decision Economics [© WileyInterScience] and is available at: http://www3.interscience.wiley.com/cgi-bin/jhome/7976.

ISSN

0143-6570

Language

en

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Keyword(s)

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