Spatial competition with concave transport costs
AbstractWe study the location-then-price game played by two firms in a circular market when consumers face non-linear transport costs. We show that for any convex transport cost function there exists a concave one such that the location-then-price games induced by these functions are strategically equivalent. Further, we provide a sufficient condition to guarantee that a similar equivalence result holds under oligopolistic competition among equidistant firms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 32 (2002)
Issue (Month): 4 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/regec
Other versions of this item:
- Frutos, María Ángeles de & Hamoudi, H. & Jarque, X., . "Spatial competition with concave transport costs," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/4302, Universidad Carlos III de Madrid.
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.:
- Economides, Nicholas, 1989. "Symmetric equilibrium existence and optimality in differentiated product markets," Journal of Economic Theory, Elsevier, vol. 47(1), pages 178-194, February.
- Frutos, María Ángeles de & Hamoudi, H. & Jarque, X., .
"Equilibrium existence in the circle model with linear quadratic transport cost,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/4281, Universidad Carlos III de Madrid.
- de Frutos, M. A. & Hamoudi, H. & Jarque, X., 1999. "Equilibrium existence in the circle model with linear quadratic transport cost," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 605-615, September.
- Peitz, Martin, 1999.
"The circular road revisited: Uniqueness and supermodularity,"
Research in Economics,
Elsevier, vol. 53(4), pages 405-420, December.
- Martin Peitz, 1999. "- The Circular Road Revisited: Uniqueness And Supermodularity," Working Papers. Serie AD 1999-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Matsumura, Toshihiro & Okamura, Makoto, 2006. "A note on the excess entry theorem in spatial markets," International Journal of Industrial Organization, Elsevier, vol. 24(5), pages 1071-1076, September.
- Santiago Carbó Valverde & Miguel Fortes Escalona, 2010. "Spatial Cournot equilibrium: do branches matter?," The Annals of Regional Science, Springer, vol. 44(2), pages 377-407, April.
- repec:ebl:ecbull:v:3:y:2007:i:30:p:1-15 is not listed on IDEAS
- Arguedas, Carmen & Hamoudi, Hamid & Saez, Manuel, 2007. "Equilibrium Nonexistence in Spatial Competition with Quadratic Transportation Costs," Working Papers in Economic Theory 2007/01, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
- Marta Risueño & Hamid Hamoudi, 2007. "A synthesis of location models," Economics Bulletin, AccessEcon, vol. 3(30), pages 1-15.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.