Article ID: | iaor20031143 |
Country: | Cuba |
Volume: | 23 |
Issue: | 2 |
Start Page Number: | 185 |
End Page Number: | 196 |
Publication Date: | May 2002 |
Journal: | Revista de Investigacin Operacional |
Authors: | Gonzlez P. Dorta, Peate D.R. Santos, Vega R. Surez |
Keywords: | location |
Demand elasticity affects price policy. In this work, two different scenarios are analyzed: inelastic demand and linear demand as a particular case of elastic demand. In this problem two firms decide locations on a network and prices in a set of spatial separated markets. The competence process is modeled as a two-stage game, locations are decided first and then prices. Nash equilibrium existence in the second stage and a nodal property on the first stage are proved.