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Cournot competition in spatial markets: Some further results

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  • Chia-Ming Yu

    ()

  • Fu-Chuan Lai

    ()

Abstract

In contrast to most of the literature on a circular market in which firms choose to disperse equally from each other in equilibrium, this research note shows that the equal-distance dispersion in a circular market results from the substitutability of products produced by two single-plant duopoly firms. Meanwhile, agglomeration at one point results from complementarity. In the multi-plant duopoly case, we find - in contrast to Chamorro-Rivas (2000) - that when firms sell complements, the equilibrium locations tend to exhibit both inter-firm agglomeration and intra-firm dispersion. In other words, the location layout in equilibrium exhibits spatial agglomeration (by pairs) finitely at many points. Copyright Springer-Verlag Berlin/Heidelberg 2003

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Bibliographic Info

Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 82 (2003)
Issue (Month): 4 (November)
Pages: 569-580

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Handle: RePEc:spr:ecogov:v:82:y:2003:i:4:p:569-580

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Related research

Keywords: Cournot model; spatial competition; differentiated products;

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Cited by:
  1. Wen-Jung Liang & Yen-Ju Lin & Hong Hwang, 2012. "Heterogeneous duopoly, spatially discriminatory pricing, and optimal location," The Annals of Regional Science, Springer, vol. 49(3), pages 845-860, December.
  2. Liang, Wen-Jung & Hwang, Hong & Mai, Chao-Cheng, 2006. "Spatial discrimination: Bertrand vs. Cournot with asymmetric demands," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 790-802, November.
  3. Colombo, Stefano, 2011. "On the rationale of spatial discrimination with quantity-setting firms," Research in Economics, Elsevier, vol. 65(3), pages 254-258, September.
  4. Chia-Hung Sun, 2010. "Spatial Cournot competition in a circular city with directional delivery constraints," The Annals of Regional Science, Springer, vol. 45(2), pages 273-289, October.
  5. Stefano Colombo, 2012. "Collusion in two models of spatial competition with quantity-setting firms," The Annals of Regional Science, Springer, vol. 48(1), pages 45-69, February.
  6. Li, Changying, 2006. "Location choice in a mixed oligopoly," Economic Modelling, Elsevier, vol. 23(1), pages 131-141, January.
  7. Andreea Cosnita-Langlais, 2011. "Cournot competition in spatial markets: a complementary result on complementarity," Economics Bulletin, AccessEcon, vol. 31(3), pages 2454-2467.
  8. 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.
  9. 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.
  10. Takeshi Ebina & Daisuke Shimizu, 2012. "Endogenous product differentiation and product R&D in spatial Cournot competition," The Annals of Regional Science, Springer, vol. 49(1), pages 117-133, August.
  11. Gupta, Barnali & Lai, Fu-Chuan & Pal, Debashis & Sarkar, Jyotirmoy & Yu, Chia-Ming, 2004. "Where to locate in a circular city?," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 759-782, June.

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