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 reveal that when the output...

In this paper, we present a new logic of indeterminacy of stationary monetary equilibria. We rst show that, in a class of dynamic Walrasian market models with at money, stationary equilibria are indeterminate; that is, there exists a continuum of stationary equilibria, where the value of money...