要 旨
The purpose of this study is to explore
the shopping behaviour of travellers as well as the strategic locations
of the retail outlets by competing firms between two neighbouring destinations/countries.
The basic model is built on the location theory pioneered by Hotelling
(1929) in his famous linear city model. In location theory, generally,
models are divided into two categories, namely, the inside location
model (where firms are located inside the city limits) and the outside
location model (where firms are located outside the city limits). The
concerned analysis here is a mix of inside and outside location model
i.e. we consider a situation where one firm is within the city whereas
the other firm is outside the city. Firms are symmetric in every other
aspect. The consumers are uniformly distributed along the city, and
within the city. The firms compete in price and locations accepting
the fact that outside firm cannot move inside the city. The choice of
location and price is sequential; location is chosen first followed
by price. We consider three types of transportation costs, namely linear,
quadratic and linearquadratic for the consumers and characterize all
the price and location equilibria under different cost structures. We
show that the relative prices charged by the competing firms depends
on the transportation cost structure when the marginal consumer (who
is indifferent between going either of the firms) is far from the boundary,
whereas interestingly, it is independent of that when the marginal consumer
is close to the boundary. On the other hand, the location of the outlets
are independent of transportation costs, when costs are linear or quadratic
in nature, it only depends on the transportation cost when cost structure
is linearquadratic.
(2003.06.18)
