Informative Versus Persuasive Advertising in a Dynamic Hotelling Monopoly

A dynamic Hotelling monopoly model is proposed, with the purpose of characterising the effects of informative and persuasive advertising in a regime of partial market coverage. The two models are solved to show the emergence of a unique saddle-point stead

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Spatial Economics Volume I Theory

Spatial Economics Volume I

Stefano Colombo Editor

Spatial Economics Volume I Theory

Editor Stefano Colombo Department of Economics & Finance Università Cattolica del Sacro Cuore Milano, Italy

ISBN 978-3-030-40097-2 ISBN 978-3-030-40098-9 https://doi.org/10.1007/978-3-030-40098-9

(eBook)

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Contents

Part I Classic Models 1

Classic Spatial Models Stefano Colombo

2

Spatial Cournot Competition Fu-Chuan Lai

3

Models of Spatial Competition: A Critical 2012 –2018 Update Ricardo Biscaia and Isabel Mota

Part II Reviews of Literature 4

5

New Economic Geography: Economic Integration and Spatial Imbalances José M. Gaspar Location Games Simon Loertscher

1 3

33

57

77

79

111 v

vi

Contents

6 Non-localised Spatial Competition: The “Spokes Model” Carlo Reggiani 7 Patent Licensing in Models of Spatial Competition: A Literature Review Marcella Scrimitore Part III Models of Spatial Economics

129

169

195

8 Zoning Regulations and Firms’ Corporate Social Responsibility Juan Carlos Bárcena-Ruiz and F. Javier Casado-Izaga

197

9 Optimal Privatization in a Vertical Chain: A Delivered Pricing Model John S. Heywood, Shiqiang Wang, and Guangliang Ye

221

10 Informative Versus Persuasive Advertising in a Dynamic Hotelling Monopoly Luca Lambertini

249

11 Quality Preference, Congestion, and Differentiation Strategy Zemin Hou and Yong Qi

265

12 Quality and Price Competition in Spatial Markets Kurt R. Brekke, Luigi Siciliani, and Odd Rune Straume

295

Index (Spa