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Spatial Discrimination with Quantity Competition and High Transportation Costs: a Note

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Author Info
Corrado Benassi () (Alma Mater Studiorum - Università di Bologna)
Alessandra Chirco () (Università di Lecce)
Marcella Scrimitore () (Università di Lecce)

Additional information is available for the following registered author(s):

Abstract

In this paper we extend the analysis of the standard model of spatial discrimination with quantity competition along the linear city to the case in which the unit transportation cost is greater than one. We show that in such a case the unique subgame perfect Nash equilibrium in locations is a dispersed symmetric equilibrium. Moreover, at this equilibrium firms' locations are not monotone in the transportation cost parameter.

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File URL: http://economicsbulletin.vanderbilt.edu/2007/volume12/EB-06L10022A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 12 (2007)
Issue (Month): 1 ()
Pages: 1-7
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Handle: RePEc:ebl:ecbull:v:12:y:2007:i:1:p:1-7

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Postal: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA
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Related research
Keywords: Market Coverage; Spatial Cournot Markets; Transportation Costs;

Find related papers by JEL classification:
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
R3 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Hamilton, Jonathan H. & Thisse, Jacques-Francois & Weskamp, Anita, 1989. "Spatial discrimination : Bertrand vs. Cournot in a model of location choice," Regional Science and Urban Economics, Elsevier, vol. 19(1), pages 87-102, February. [Downloadable!] (restricted)
  2. Anderson, Simon P & Neven, Damien J, 1991. "Cournot Competition Yields Spatial Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 793-808, November. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Qiang Wang & Qi Chen, 2008. "Cournot competition and location choice with wage bargaining," Economics Bulletin, Economics Bulletin, vol. 12(22), pages 1-5. [Downloadable!]
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This page was last updated on 2009-12-12.

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