Consistent Price and Location Conjectures in Spatial Competition Models
AbstractRemarkable advances have been made in spatial competition theory during the past three decades. Only in recent years, however, have the implications of firms' conjectural responses become well understood. Here research has largely focused on analyzing markets where prices (short run) or prices and locations (medium and long run) are exogenous. This paper examines the equilibrium properties of spatial firms when prices and locations are consistent or endogenous. Price reaction equations are complemented with location reaction equations, consistency conditions are introduced, and numerical solutions are then given. While the simulations are confined to one-dimensional markets, equilibrium solutions unambiguously indicate how prices, locations, and profits are related to the costs of firms, the elasticity of consumer demand, and the presence or absence of market boundaries.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Springer in its journal Annals of Regional Science.
Volume (Year): 29 (1995)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00168/index.htm
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer, vol. 48(2), pages 405-431, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.