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Address Models of Value Theory

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  • G.C. Archibald
  • B.C. Eaton
  • Richard Lipsey

Abstract

We argue that small group competition among overlapping oligopolies is the predominate market form in modern society applicable whenever goods are located by their address in some relevant space: characteristic space for monopolistic competition and geographic space for spatial competition. Predictions from models where there are a continuum of possible goods are radically different from those with a finite number of goods. In address models, competition is localized; there is a range of free entry equilibria which include zero profits at one extreme and very large profits at the other.

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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 495.

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Length: 64
Date of creation: 1982
Date of revision:
Handle: RePEc:qed:wpaper:495

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Cited by:
  1. Morten Hviid, 1990. "Sequential capacity and price choices in a duopoly model with demand uncertainty," Journal of Economics, Springer, vol. 51(2), pages 121-144, June.
  2. OTTAVIANO, Gianmarco & THISSE, Jacques-François, 1999. "Monopolistic competition, multiproduct firms and optimum product diversity," CORE Discussion Papers 1999019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Thill, Jean-Claude, 1997. "Multi-outlet firms, competition and market segmentation strategies," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 67-86, February.
  4. Richard Lipsey, 2001. "Successes and failures in the transformation of economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 169-201.
  5. Crabbé, Philippe, 1986. "Options financières et opportunités intertemporelles d’investissement irréversible en incertitude," L'Actualité Economique, Société Canadienne de Science Economique, vol. 62(4), pages 579-596, décembre.
  6. Xavier Martínez Giralt, 1990. "Empresas multiproducto, competencia en precios y localización," Investigaciones Economicas, Fundación SEPI, vol. 14(3), pages 503-517, September.
  7. Gupta, Abhay, 2007. "Measuring Quality Change due to Technological Externality in Multi-Feature Service Bundles," MPRA Paper 9284, University Library of Munich, Germany.
  8. Nicolai J. Foss & Thorbj�rn Knudsen, 2003. "The resource-based tangle: towards a sustainable explanation of competitive advantage," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 291-307.

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