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Monopolistic Competition on the Pyramid

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  • von Ungern-Sternberg, Thomas

Abstract

The purpose of this paper is to develop a model of monopolistic competition that has a simple locational interpretation and which allows for multifirm competition. One of the major weaknesses of the standard "circular road" model is the fact that it allows only localized competition. This creates problems when one wishes to analyze problems of international trade, where one often has to work with firms with different production costs. One of the major advantages of the "pyramid" model presented here is that one can easily compute the firms' equilibrium profits even when their production costs differ. Copyright 1991 by Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Industrial Economics.

Volume (Year): 39 (1991)
Issue (Month): 4 (June)
Pages: 355-68

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Handle: RePEc:bla:jindec:v:39:y:1991:i:4:p:355-68

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

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Cited by:
  1. Brito, Duarte, 2003. "Preemptive mergers under spatial competition," International Journal of Industrial Organization, Elsevier, vol. 21(10), pages 1601-1622, December.
  2. Garcia-Gallego, Aurora & Georgantzis, Nikolaos, 2001. "Multiproduct activity in an experimental differentiated oligopoly," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 493-518, March.
  3. Duarte Brito & Pedro Pereira, 2010. "Access to Bottleneck Inputs under Oligopoly: A Prisoners’ Dilemma?," Southern Economic Journal, Southern Economic Association, vol. 76(3), pages 660-677, January.
  4. Braid, Ralph M., 1998. "Spatial price competition when stores are not certain to have what consumers want," Regional Science and Urban Economics, Elsevier, vol. 28(2), pages 143-161, March.
  5. Steffen Hoernig & Ingo Vogelsang, 2012. "The Ambivalence of Two-Part Tariffs for Bottleneck Access," FEUNL Working Paper Series wp568, Universidade Nova de Lisboa, Faculdade de Economia.
  6. Hoernig, Steffen, 2011. "Asymmetric Broadband Wholesale Regulation," CEPR Discussion Papers 8399, C.E.P.R. Discussion Papers.

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