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.

Original languageEnglish
Pages (from-to)157-161
Number of pages5
JournalManagerial and Decision Economics
Volume25
Issue number3
DOIs
Publication statusPublished - 1 Apr 2004
Externally publishedYes

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