A note on "Price variation in spatial markets: the case of perfectly inelastic demand"

by Klaus Schöler (University of Siegen)

This note on the paper of Mulligan and Fik (Annals of Regional Science 23: 187-201) is based on the need for consistent models. If we look at the spatial oligopoly approach of Mulligan and Fik from this point of view, we can draw two conclusions: First, their model does not indicate any reasons for different conjectural price variations. Second, exactly one conjectural reaction coefficient is consistent with the profit maximizing behavior of the firms.

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Year of publication:	[1990]
Authors:	Schöler, Klaus
Other Persons:	Mulligan, Gordon F. (contributor) ; Fik, Timothy Joseph (contributor)
Publisher:	Siegen : Universität-Gesamthochschule Siegen, Fachbereich Wirtschaftswissenschaften
Subject:	Theorie \| Theory \| Räumliche Preistheorie \| Spatial price competition