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This study analyzes optimal zoning policy in a duopolistic spatial competition framework for both circular and linear … spaces. A regulator is introduced in the third stage of the price-location game through a welfare function to model zoning …. Nevertheless, when the preferences of the regulator are biased towards firms (firm-oriented) the zoning area is maximized, with …
Persistent link: https://www.econbiz.de/10011979956
This study analyzes optimal zoning policy in a duopolistic spatial competition framework for both circular and linear … spaces. A regulator is introduced in the third stage of the price-location game through a welfare function to model zoning …. Nevertheless, when the preferences of the regulator are biased towards firms (firm-oriented) the zoning area is maximized, with …
Persistent link: https://www.econbiz.de/10012952942
One of the instruments of market competition regulation is the formation of a hierarchical structure of producers by providing some of them with the preferential terms of business. In addition to the changes in market prices, the sale of privileges to producers allows consumer to extract some...
Persistent link: https://www.econbiz.de/10015254176
We show that the entry of a second firm in a horizontally differentiated market (ala Hotelling) may harm consumers as prices increase and consumer's surplus possibly decrease. We first derive the price and the consumer's surplus of a monopoly which is located at the center of the market. When a...
Persistent link: https://www.econbiz.de/10011523708
unitary length and zoning. In this case equivalence does not hold. Moreover, non-existence of equilibrium is shown under …
Persistent link: https://www.econbiz.de/10011281957
The paper models duopolistic competition in so called monotowns: towns with one big factory where most of the citizens are employed. Workers after job go to one of the competitor shops, buy the product and bring it home. Nash equilibrium is found for linear and two-dimensional cases. The...
Persistent link: https://www.econbiz.de/10012002089
The strategic management literature has built rich and behaviorally plausible models of firms, yet the industrial policy literature has overlooked nuances in firm behavior. This paper bridges these two literatures by incorporating increased micro-level realism to examine how industrial policy...
Persistent link: https://www.econbiz.de/10014033102
Spanish Abstract: Este paper considera el efecto del cargo por confiabilidad sobre el precio spot de la energía eléctrica en Colombia, implementado en 2006 con el fin de incentivar a los generadores existentes o nuevos inversionistas para mejorar la confiabilidad de la prestación del...
Persistent link: https://www.econbiz.de/10013027758
We present a Cournot model that compares the critical threshold of collusion in Duopoly and Oligopoly Markets where the actors are private, mixed or public. We assume that the incentive critical threshold for collusion depends on the interconnection fees. The different threshold values...
Persistent link: https://www.econbiz.de/10013086142
We study the design of auctions for the allocation of essential inputs, such as spectrum rights, transmission capacity or airport landing slots, to firms using these inputs to compete in a downstream market. When welfare matters in addition to auction revenues, there is a tradeoff: provisions...
Persistent link: https://www.econbiz.de/10012960122