We study a spatial competition model where there are two conventional sellers and one Internet retailer. The Internet retailer tries to enter the market where there are two brick-and-mortar stores. Compared with the conventional retailers that incur l...
We study a spatial competition model where there are two conventional sellers and one Internet retailer. The Internet retailer tries to enter the market where there are two brick-and-mortar stores. Compared with the conventional retailers that incur linear transportation cost to customer, the Internet retailer incur fixed transportation cost. This distinctive characteristic gives us a new form of Nash equilibria.