Price and Variety in the Spokes Model
Bibliographic Data
| ID | 9720319 |
|---|---|
| Authors | Yongmin Chen (University of Colorado Boulder), Michael H Riordan (Columbia University), Michael Riordan (0000-0002-8061-818X, Columbia University) |
| Year | 2007 |
| Volume | 117 |
| Issue | 522 |
| Pages | 897-921 |
| Publication date | 2007-07-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2007.02063.x |
| OpenAlex | W2134305414 |
| Language | EN |
| Citations received | 14 |
| References cited | 19 |
The spokes model of nonlocalized spatial competition provides a new analytical tool for differentiated oligopoly and a representation of spatial monopolistic competition. At the unique symmetric equilibrium of the spokes model, an increase in the number of firms leads to lower prices when consumers have relatively high product valuations, but, surprisingly, to higher prices for lower consumer valuations. New entry alters consumer and social welfare through price, market expansion, and matching effects. With free entry, there can be multiple equilibria in the number of firms, the market may provide too many or too few varieties from a social welfare perspective, and the equilibrium price remains above marginal cost even when the number of firms is arbitrarily large
Economics · Statistics · Variety (cybernetics · Consumer Market Behavior and Pricing · Digital Platforms and Economics · Mathematics · Merger and Competition Analysis
The language and geographic scope of cultural and media products
Profit‐raising entry under oligopolistic trade with endogenous input prices
Imperfect Competition in Selection Markets
The Effects of Competition on the Price for Cable Modem Internet Access
Excessive vs. insufficient entry in spatial models
Quality-improving and cost-reducing strategic alliances
Price‐sensitive demand and market entry
Cost structures and innovation incentives
Pass-Through as an Economic Tool
Churn Versus Diversion in Antitrust
Mobile Termination, Network Externalities and Consumer Expectations
Can Prominence Matter even in an Almost Frictionless Market
Advertising and Content Differentiation
Newspapers and Parties
| Citations per year | 0.93 |
|---|---|
| Citation span | 2011 - 2026 (16) |
| Highly cited | No |