| Sumario: | A simple linear-city model to determine the impact of retail firm ownership on price equilibrium is presented. It is demonstrated that price divergence emerges due to the differences in retail firm ownership, with retail firms under different ownership internalizing shopping externalities differently. In addition, it is revealed that if a commercial center has two specialized retail firms, these firms charge the same markup for different goods at the equilibrium. It is concluded that, despite problems including the introduction of an elastic demand function and the effect of the substitutability of goods, the analysis provides a new and interesting perspective on location theory and industrial organization.
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