Differentiated Bertrand markets: restoring the minimum differentiation principle

I introduce non-perfect substitutability between products into the spatial Bertrand model. I show that if goods are complements, the firms always agglomerate. If goods are substitutes, the firms agglomerate if the transportation costs are not too high. Copyright Springer-Verlag Berlin Heidelberg 2013

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Year of publication:	2013
Authors:	Colombo, Stefano
Published in:	Letters in Spatial and Resource Sciences. - Springer. - Vol. 6.2013, 2, p. 103-108
Publisher:	Springer
Subject:	Product differentiation \| Spatial competition \| Agglomeration

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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