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Partial Agglomeration or Dispersion in Spatial Cournot Competition

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  • Toshihiro Matsumura

    ()
    (Institute of Social Science, University of Tokyo)

  • Takao Ohkawa

    ()
    (Department of Economics, Ritsumeikan University)

  • Daisuke Shimizu

    ()
    (Institute of Social Science, University of Tokyo)

Abstract

We revisit works by Pal and Matsushima, which, respectively, present different equilibrium locations. We consider nonlinear transport costs and show that Pal's result (dispersion) is more robust than Matsushima's (partial agglomeration). Pal's result holds true for any transport cost function, while Matsushima's does not hold under strong concavity or convexity of the transport cost function. If we consider sequential move of location, Pal's result holds for any transport costs. On the other hand, Matsushima's does not hold except for linear transport cost. We also discuss welfare and show that nonlinearity of the transport cost function yields rich welfare implications.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 72 (2005)
Issue (Month): 1 (July)
Pages: 224–235

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Handle: RePEc:sej:ancoec:v:72:1:y:2005:p:224-235

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Cited by:
  1. Inoue, Tomohiro & Kamijo, Yoshio & Tomaru, Yoshihiro, 2009. "Interregional mixed duopoly," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 233-242, March.
  2. Ricardo Biscaia & Isabel Mota, 2013. "Models of spatial competition: A critical review," Papers in Regional Science, Wiley Blackwell, vol. 92(4), pages 851-871, November.
  3. Toshihiro Matsumura & Noriaki Matsushima, 2012. "Spatial Cournot competition and transportation costs in a circular city," The Annals of Regional Science, Springer, vol. 48(1), pages 33-44, February.
  4. Toshihiro Matsumura & Daisuke Shimizu, 2009. "Equilibrium Location and Economic Welfare in Delivered Pricing Oligopoly," Economics Bulletin, AccessEcon, vol. 29(2), pages 760-768.
  5. Takeshi Ebina & Toshihiro Matsumura & Daisuke Shimizu, 2009. "Mixed oligopoly and spatial agglomeration in quasi-linear city," Economics Bulletin, AccessEcon, vol. 29(4), pages 2722-2729.
  6. repec:hal:journl:halshs-00196099 is not listed on IDEAS
  7. Takanori Ago, 2013. "Demand creation and location: a variable consumer-distribution approach in spatial competition," The Annals of Regional Science, Springer, vol. 51(3), pages 775-792, December.

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