Where to locate to escape predation?

We study the credibility of predation to deter entry in the linear Cournot shipping model of spatial competition with strategic location choice, both on the linear and circular markets. For a high enough discount factor, the monopoly is preserved, but the credibility of predatory conduct is lower on the circular than on the linear market.

MoreLess

Year of publication:	2014-04-01
Authors:	Cosnita-Langlais, Andreea
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 34.2014, 2, p. 614-626
Publisher:	AccessEcon
Subject:	predatory conduct \| spatial Cournot competition \| strategic location choice

More details

Extent:	application/pdf
Type of publication:	Article
Classification:	D4 - Market Structure and Pricing ; R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010756147