Kyureghian, Hrachya; Plotnikova, Maria; Sarangi, Sudipta - In: Studies in Microeconomics 1 (2013) 1, pp. 91-111
We consider a standard linear city model with two firms, where firms and consumers both incur transport costs. This is done by assuming that the total transport cost is shared by the buyers and sellers according to an exogenously given rule. In the model, firms choose locations and prices, with...