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Spatial Cournot Competition in a Linear City with Directional Delivery Constraints

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  • Chia-Hung Sun

Abstract

type="main"> This study investigates a sequential game of location and transportation mode choices, as well as the subsequent quantity choice. The results show that spatial Cournot competition with directional delivery constraints yields a richer set of spatial configurations, involving midpoint agglomeration, maximum differentiation and asymmetric dispersion, and a richer set of transportation mode selections, involving delivery in different directions, asymmetric delivery between duopoly firms, and delivery in two directions by each firm, depending on the fixed cost of a transportation instrument. This paper concludes with an investigation of welfare analysis on optimal locations and transportation modes.

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  • Chia-Hung Sun, 2014. "Spatial Cournot Competition in a Linear City with Directional Delivery Constraints," The Japanese Economic Review, Japanese Economic Association, vol. 65(3), pages 344-374, September.
  • Handle: RePEc:bla:jecrev:v:65:y:2014:i:3:p:344-374
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    File URL: http://hdl.handle.net/10.1111/jere.12026
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