Endogenous R&D spillovers and locational choice with discriminatory pricing

Claudio Piga, Joanna Poyago-Theotoky

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

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.

LanguageEnglish
Pages157-161
Number of pages5
JournalManagerial and Decision Economics
Volume25
Issue number3
DOIs
Publication statusPublished - 1 Apr 2004
Externally publishedYes

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Costs
Marketing
Internet
Spillover
Discriminatory pricing
Firm location
World Wide Web
Retailers
Coefficients
Spatial price discrimination
Transportation costs

Cite this

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Endogenous R&D spillovers and locational choice with discriminatory pricing. / Piga, Claudio; Poyago-Theotoky, Joanna.

In: Managerial and Decision Economics, Vol. 25, No. 3, 01.04.2004, p. 157-161.

Research output: Contribution to journalArticle

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