Pricing with Route Choice and At-Location Congestion

This paper studies pricing in a spatial duopoly where consumers choose both outlets and travel routes, generating route and at-location congestion. In a regular regime, the equilibrium conditions admit a reduced representation whose Jacobian has a symmetric rank-one Schur complement structure. This structure gives sufficient conditions for local sign-stable inversion and implies that at-location congestion dampens own-price sensitivity. A markup increase follows under an additional local best-response condition.