【摘要】This paper examines the Nash equilibrium prices of stores in a spatial search model.By assumption, a large store is certain to have the particular product a consumer wants, whereasa small store has it with probability w. Large and small stores alternate with each other on acircular roadway. Consumers must search by visiting stores. In the Nash price equilibrium, largestores charge higher prices than small stores. Perhaps surprisingly, all Nash equilibrium pricesare lower than in the corresponding perfect-information-no-search model (for a given value w).This last result is also demonstrated in a model with only small stores.

【关键词】Spatial competition;Nash equilibrium prices;stores, search

【文献来源】Ralph M. Braid.Papers in Regional Studies.2014（1）