This paper models the decision of vertically-linked firms to build either partitioned or connected networks of supply of an intermediate good. In each case, the locations of upstream and downstream firms are correlated. Input specificity is related both to variable costs (transport costs of the...

This paper models, in game-theoretical terms, the location of two vertically-linked monopolistic firms in a spatial economy formed by a large, high labor cost country and a relatively small, low labor cost country. It is found that the decrease in transport costs shifts firms towards the low...

This paper examines the equilibrium of location of N vertically-linked firms. In a spatial economy composed of two regions, a monopolist firm supplies an input to N consumer goods firms that compete in quantities. It was concluded that, when there are increases in the transport cost of the...

A classification of the locational patterns of firms (with economies of scope present) is outlined, in order to cast light on the location of the multiplant, multinational firm. This is driven by three forces: economies of scope that follow from the co-location of different activities;...

This paper studies the issue of agglomeration versus fragmentation of vertically related industries. While the downstream industry works under perfect competition, the upstream industry is a duopoly where each firm supplies a differentiated input to the competitive firms. These process the...

This paper describes the implementation of a new protocol for the regular economics seminar run by the Economics Department of ISEG and the research center UECE during academic year 2010-2011. The main innovative features of this protocol were: the introduction of a discussant that explains the...

This paper deals with the location of input supply in a two country spatial economy. A duopoly supplies intermediate goods to a perfectly competitive consumer good industry that operates with a quadratic production function inspired in PENG, THISSE and WANG (2006). Since the consumer good is...

In a set-up with intermediate production, we analyze how a shipper's choice of transport technology, traditional versus modern, interacts with the mode of foreign expansion by an service firm, export versus foreign direct investment (FDI). In terms of the mode of foreign expansion by the service...