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Cournot oligopolistic competition in spatially separated markets: The Stackelberg equilibrium

Author

Listed:
  • Pablo Dorta-González
  • Dolores R. Santos-Peñate
  • Rafael Suárez-Vega

Abstract

Consider a two-stage non-cooperative Cournot game with location choice involving r firms. There are n spatially separated markets located at the vertices of a network. Each firm, first selects the location of a facility and then selects the quantities to supply to the markets in order to maximize its profit. Non-zero conjectural variation at the second stage in the model by Sarkar et al. (1997) is studied. When the demand in each market is sufficiently large, equilibrium in the quantities offered by each firm in the markets exists. Furthermore, each firm chooses to locate its facility at the vertices. Copyright Springer-Verlag 2004

Suggested Citation

  • Pablo Dorta-González & Dolores R. Santos-Peñate & Rafael Suárez-Vega, 2004. "Cournot oligopolistic competition in spatially separated markets: The Stackelberg equilibrium," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(3), pages 499-511, September.
    • Handle: RePEc:spr:anresc:v:38:y:2004:i:3:p:499-511
    DOI: 10.1007/s00168-003-0155-8
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    Cited by:

    1. Santiago Carbó Valverde & Miguel Fortes Escalona, 2010. "Spatial Cournot equilibrium: do branches matter?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(2), pages 377-407, April.

    More about this item

    Keywords

    L13; R30;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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