主题｜Topic：Location Choice and Costly Product Differentiation in a Mixed Duopoly
时间｜Time：10月11号（周五）｜Oct. 11th (Friday), 2:00-5:15PM
地点｜Venue：文澴楼709会议室｜Meeting Room 709，WENHUAN
主讲｜Speaker
曾辰航，伟德BETVlCTOR1946副教授，在 Review of Industrial Organization, International Journal of Economic Theory, Journal of Economics, Economics Letters 等国际知名期刊发表文章十余篇。
研究领域｜Research Interests
产业组织理论、微观理论，价格理论
Industrial organization theory，Microeconomic theory，Price theory
摘要｜Abstract
This paper introduces costly product differentiation into a mixed duopoly with strategic location choice in the first stage and price competition in the second stage. Initially both firms locate at the center with no product differentiation. We demonstrate that the location choices critically depend on the effectiveness of investments in creating product differentiation, and the nationality of the private firm. Firstly, firms only choose to move towards the edge when the investments are sufficiently effective, regardless of whether the private firm is domestic or foreign. Secondly, a domestic profit-maximizing private firm always invests more than the public firm which maximizes social welfare. Thirdly, if the private firm is foreign owned, the public firm invests more than the private firm when the investments are moderately effective. Otherwise, the foreign private firm invests more on product differentiation.
