Department   Undergraduate School  , School of Commerce
   Position   Professor
Language Japanese
Publication Date 2015/12
Type Academic Journal
Peer Review Peer reviewed
Title Product Differentiation and Entry Timing in a Continuous Time Spatial Competition Model, European Journal of Operational Research
Contribution Type Co-authored (first author)
Journal European Journal of Operational Research
Journal TypeAnother Country
Publisher Elsevier
Volume, Issue, Page 247(3),pp.904-913
Author and coauthor Takeshi Ebina, Noriaki Matsushima and Daisuke Shimizu
Details We extend the well-known spatial competition model (d'Aspremont, Gabszewicz & Thisse, 1979) to a continuous time model in which two firms compete in each instance. Our focus is on the entry timing decisions of firms and their optimal locations. We demonstrate that the leader has an incentive to locate closer to the center to delay the follower's entry, leading to a non-maximum differentiation outcome. We also investigate how exogenous parameters affect the leader's location and firms' values and, in particular, numerically show that the profit of the leader changes non-monotonically with an increase in the transport cost parameter.
URL for researchmap https://researchmap.jp/ebinatakeshi2010/