Spatial Cournot competition with non-extreme directional constraints

The circular city model and the linear city model are extended to allow for asymmetric directional transportation costs. A two-stage location-then-quantity model is proposed. We show that in the circular city model, maximal dispersion arises in equilibrium, while in the linear city model, the unique equilibrium is represented by both firms agglomerating in a non-central point of the segment. Copyright Springer-Verlag Berlin Heidelberg 2013

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Year of publication:	2013
Authors:	Colombo, Stefano
Published in:	The Annals of Regional Science. - Western Regional Science Association - WRSA. - Vol. 51.2013, 3, p. 761-774
Publisher:	Western Regional Science Association - WRSA

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010728086