The circular road revisited: Uniqueness and supermodularity
AbstractThe model of the circular road has proved to be a popular model of oligopolistic interaction, yet its theoretical properties are not fully explored. In this paper I extend the uniqueness result of price equilibrium in the circular road with equidistant locations from quadratic transportation costs to a class of utility functions of the consumers. I show that the associated game is supermodular and dominance solvable. The paper also discusses possible extensions and limitations of the model.
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Bibliographic InfoArticle provided by Elsevier in its journal Research in Economics.
Volume (Year): 53 (1999)
Issue (Month): 4 (December)
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Web page: http://www.elsevier.com/locate/inca/622941
Other versions of this item:
- Martin Peitz, 1999. "- The Circular Road Revisited: Uniqueness And Supermodularity," Working Papers. Serie AD 1999-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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