In this paper, spatial competition between two sellers in a market (Hotelling, 1929) and total transportation costs minimization (Weber, 1909) are combined, and equilibrium and optimum locations of firms are analyzed along with the consequent policy implications. We show that when the output...

This paper introduces a symmetric zoning regulation into a spatial Cournot competition model and analyzes how this intervention affects equilibrium locations and social welfare. It is shown that firms will locate separately at the two endpoints of a wide enough zoning enacted in the middle area...