Lecture 11

Locadon c minimizes customers travel distance locadon

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Unformatted text preview: f the differenDator is Dme or locaDon, the last mover may have the advantage –  Suppose that customers go to the nearest convenience store •  Store A locates 1 mile from Freeway •  Where will Store B locate? –  LocaDon C minimizes customer's travel distance –  LocaDon B maximizes customers A B ⅓ mile 800 people 1 mile 1,200 people ⅓ mile 800 people 1 mile 1,200 people C ⅓ mile 800 people Other Examples •  There are a number of cases where the last mover gains an advantage –  Times for flights –  Movie schedules –  Cola drink flavors Commitment •  A commitment problem arises from a...
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This note was uploaded on 11/07/2010 for the course ECON ECON 2 taught by Professor Hamilton during the Fall '09 term at UCSD.

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