- The Circular Road Revisited: Uniqueness And Supermodularity
AbstractThe model of the circular road has proved to be a popular model of oligopolistic interaction, yet its theoretical properties are not fully explored. In this paper I extend the uniqueness result of price equilibrium in the circular road with equidistant locations from quadratic transportation costs to a class of utility functions of the consumers. I show that the associated game is supermodular and dominance solvable. The paper also discusses possible extensions and limitations of the model.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 1999-06.
Length: 18 pages
Date of creation: Apr 1999
Date of revision:
Publication status: Published by Ivie
Circular Road; Localized competition; supermodular games;
Other versions of this item:
- Peitz, Martin, 1999. "The circular road revisited: Uniqueness and supermodularity," Research in Economics, Elsevier, vol. 53(4), pages 405-420, December.
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