Spatial Discrimination with Quantity Competition and High Transportation Costs: a Note

In this paper we extend the analysis of the standard model of spatial discrimination with quantity competition along the linear city to the case in which the unit transportation cost is greater than one. We show that in such a case the unique subgame perfect Nash equilibrium in locations is a dispersed symmetric equilibrium. Moreover, at this equilibrium firms' locations are not monotone in the transportation cost parameter.

MoreLess

Year of publication:	2007-01-15
Authors:	Chirco, Alessandra ; Scrimitore, Marcella ; Benassi, Corrado
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 12.2007, 1, p. 1-7
Publisher:	AccessEcon
Subject:	Market Coverage

freely available

Full text |

More access options

Check Google Scholar

In libraries world-wide (WorldCat)

In German libraries (KVK)

subito order

I need help

More details

Extent:	application/pdf
Type of publication:	Article
Classification:	L1 - Market Structure, Firm Strategy, and Market Performance ; R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010629426