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Spatial Cournot competition with non-extreme directional constraints

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  • Stefano Colombo

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Abstract

The circular city model and the linear city model are extended to allow for asymmetric directional transportation costs. A two-stage location-then-quantity model is proposed. We show that in the circular city model, maximal dispersion arises in equilibrium, while in the linear city model, the unique equilibrium is represented by both firms agglomerating in a non-central point of the segment. Copyright Springer-Verlag Berlin Heidelberg 2013

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File URL: http://hdl.handle.net/10.1007/s00168-013-0560-6
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Bibliographic Info

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 51 (2013)
Issue (Month): 3 (December)
Pages: 761-774

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Handle: RePEc:spr:anresc:v:51:y:2013:i:3:p:761-774

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Keywords: D43; L13;

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  1. Cancian, Maria & Bills, Angela & Bergstrom, Theodore, 1995. "Hotelling Location Problems with Directional Constraints: An Application to Television News Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 121-24, March.
  2. Stefano Colombo, 2009. "The unidirectional Hotelling model with spatial price discrimination," Economics Bulletin, AccessEcon, vol. 29(4), pages 3031-3040.
  3. Kai Andree, 2011. "Product differentiation and spatial agglomeration in a unidirectional Cournot model," Letters in Spatial and Resource Sciences, Springer, vol. 4(3), pages 167-172, October.
  4. Stefano Colombo, 2011. "Spatial price discrimination in the unidirectional Hotelling model with elastic demand," Journal of Economics, Springer, vol. 102(2), pages 157-169, March.
  5. Mohammed Kharbach, 2009. "A Unidirectional Hotelling Model," Economics Bulletin, AccessEcon, vol. 29(3), pages 1814-1819.
  6. Lai, Fu-Chuan, 2001. "Sequential locations in directional markets," Regional Science and Urban Economics, Elsevier, vol. 31(5), pages 535-546, September.
  7. Nilssen, Tore, 1997. "Sequential location when transportation costs are asymmetric," Economics Letters, Elsevier, vol. 54(2), pages 191-201, February.
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