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On cost restrictions in spatial competition models with heterogeneous firms

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  • Marco Alderighi

    ()
    (University of Valle d'Aosta, Italy.)

  • Claudio A. Piga

    ()
    (Dept of Economics, Loughborough University)

Abstract

This paper investigates the properties of two types of cost restrictions that guarantee the existence of an equilibrium in pure strategies in Bayesian spatial competition models with heterogenous firms.

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File URL: http://www.lboro.ac.uk/departments/sbe/RePEc/lbo/lbowps/WP_cost_restrictions_2009_09.pdf
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Bibliographic Info

Paper provided by Department of Economics, Loughborough University in its series Discussion Paper Series with number 2009_09.

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Date of creation: Jul 2009
Date of revision: Jul 2009
Handle: RePEc:lbo:lbowps:2009_09

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Related research

Keywords: Localized competition; market effciency; cost heterogeneity.;

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References

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  1. Marco Alderighi & Claudio A. Piga, 2008. "The Circular City with Heterogenous Firms," Working Paper Series 16-08, The Rimini Centre for Economic Analysis, revised Jan 2008.
  2. Jonathan Vogel, 2008. "Spatial Competition with Heterogeneous Firms," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 423-466, 06.
  3. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-50, September.
  4. Eaton, B Curtis & Lipsey, Richard G, 1978. "Freedom of Entry and the Existence of Pure Profit," Economic Journal, Royal Economic Society, vol. 88(351), pages 455-69, September.
  5. Chad Syverson, 2004. "Market Structure and Productivity: A Concrete Example," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1181-1222, December.
  6. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
  7. Marco Alderighi & Claudio A. Piga, 2009. "On cost restrictions in spatial competition models with heterogeneous firms," Discussion Paper Series 2009_09, Department of Economics, Loughborough University, revised Jul 2009.
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Cited by:
  1. Marco Alderighi & Claudio A. Piga, 2009. "On cost restrictions in spatial competition models with heterogeneous firms," Discussion Paper Series 2009_09, Department of Economics, Loughborough University, revised Jul 2009.
  2. Matthew Beacham, 2012. "The effect of Stackelberg cost reductions on spatial competition with heterogeneous firms," Discussion Papers 12/14, Department of Economics, University of York.

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