Endogenous R&D spillovers and locational choice with discriminatory pricing

Claudio Piga; Joanna Poyago-Theotoky

doi:10.1002/mde.1137

Endogenous R&D spillovers and locational choice with discriminatory pricing

Claudio Piga, Joanna Poyago-Theotoky

Research output: Contribution to journal › Article › peer-review

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 language	English
Pages (from-to)	157-161
Number of pages	5
Journal	Managerial and Decision Economics
Volume	25
Issue number	3
DOIs	https://doi.org/10.1002/mde.1137
Publication status	Published - 1 Apr 2004
Externally published	Yes

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AB - 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.

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Endogenous R&D spillovers and locational choice with discriminatory pricing

Abstract

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