Location as an instrument for social welfare improvement in a spatial model of cournot competition
AbstractTwo-stage models are the main frameworks in the analysis of oligopolistic competition. Literature has discussed some properties of such models when Cournot competition occurs in the second stage and assuming a non-spatial context. It finds that private and social optima are asymmetric. Using spatial behavior with multiple marketplaces, the outcome is different. A social planner can use the location variable as an instrument for reallocating production from the equilibrium spatial pattern to the optimal outcome while maintaining the symmetry of the model.
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Bibliographic InfoArticle provided by Fundación SEPI in its journal Investigaciones Economicas.
Volume (Year): 30 (2006)
Issue (Month): 1 (January)
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Postal: Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain
Web page: http://www.fundacionsepi.es/
Other versions of this item:
- Raquel Arévalo-Tomé & José-María Chamorro-Rivas, 2005. "Location as an instrument for social welfare improvement in a spatial model of Cournot competition," Working Papers 0501, Universidade de Vigo, Departamento de Economía Aplicada.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
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.:
- Gaudet, Gerard & Salant, Stephen W, 1991.
"Uniqueness of Cournot Equilibrium: New Results from Old Methods,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 399-404, April.
- Gaudet, G. & Salant, S.W., 1988. "Uniqueness Of Cournot Equilibrium: New Results From Old Methods," Cahiers de recherche 8818, Université Laval - Département d'économique.
- Gaudet, G. & Salant, S., 1988. "Uniqueness Of Cournot Equilibrium: New Results From Old Methods," Papers 89-10, Michigan - Center for Research on Economic & Social Theory.
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