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Spatial Cournot Competition in a Circular City with More than Two Dispatches

Author

Listed:
  • Chia-Hung Sun

    (Soochow University)

  • Jyh-Fa Tsai

    (National Taipei University)

  • Fu-Chuan Lai

    (Academia Sinica and National Chengchi University)

Abstract

This paper investigates spatial Cournot competition in a circular city, where the maximal service range of a vehicle is less than half of the perimeter, and a firm needs to initiate more than two dispatches to serve the whole market. We examine a multi-stage game of location and transportation mode choices, and the subsequent quantity competition between duopoly firms. The findings reveal that non-maximum dispersion is the unique location equilibrium when duopoly firms deliver products in different transportation modes or when the transportation mode decisions are made endogenously and the fixed cost of a transportation instrument is relatively high.

Suggested Citation

  • Chia-Hung Sun & Jyh-Fa Tsai & Fu-Chuan Lai, 2017. "Spatial Cournot Competition in a Circular City with More than Two Dispatches," The Japanese Economic Review, Springer, vol. 68(4), pages 413-442, December.
    • Handle: RePEc:spr:jecrev:v:68:y:2017:i:4:d:10.1111_jere.12120
    DOI: 10.1111/jere.12120
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    References listed on IDEAS

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    More about this item

    Keywords

    D43; L13; R30; R40;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • 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
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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