In a spatial model with quantity setting firms, we analyse the possibility of cooperation in a long-term relationship, where firms compete in location. It is found that endogenizing the location decisions makes collusion more difficult. Copyright (c) 2007 the author(s). Journal compilation (c)...

This article proposes a simple model of economic geography by which to derive analytical results when jointly considering two centrifugal forces - congestion costs together with the pull demand effect - within the Dixit-Stiglitz-Iceberg framework. In this vein, we develop a unified model with...