Location as an instrument for social welfare improvement in a spatial model of Cournot competition
AbstractTwo-stage models are main frameworks in the analysis of oligopolistic competition. Literature has discussed some properties of such models when Cournot competition occurs in the second stage and assuming a non-spatial context. It finds that private and social optima are asymmetric. Using a spatial behavior with multiple marketplaces, the outcome is different. A social planner can use the location variable as an instrument for reallocating production from the equilibrium spatial pattern to the optimal outcome while maintaining the symmetry of the model.
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Bibliographic InfoPaper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 0501.
Length: 26 pages
Date of creation: Jan 2005
Date of revision:
Other versions of this item:
- Raquel Arévalo-Tomé & José María Chamorro-Rivas, 2006. "Location as an instrument for social welfare improvement in a spatial model of cournot competition," Investigaciones Economicas, Fundación SEPI, vol. 30(1), pages 117-136, January.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
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- Gaudet, G. & Salant, S., 1988.
"Uniqueness Of Cournot Equilibrium: New Results From Old Methods,"
89-10, Michigan - Center for Research on Economic & Social Theory.
- Gaudet, Gerard & Salant, Stephen W, 1991. "Uniqueness of Cournot Equilibrium: New Results from Old Methods," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 399-404, April.
- Gaudet, G. & Salant, S.W., 1988. "Uniqueness Of Cournot Equilibrium: New Results From Old Methods," Cahiers de recherche 8818, Université Laval - Département d'économique.
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