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Cournot competition in spatial markets: a complementary result on complementarity

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  • Andreea Cosnita-Langlais

    (EconomiX-CNRS and Université Paris Ouest Nanterre La Défense)

Abstract

We study location equilibria for a symmetrical two-store duopoly selling differentiated products on the circle market. In contrast to the existing literature, we assume that each store sells a different product. We consider both complementarity among all varieties on the market and intra-firm complementarity but substitutability between rival varieties, and obtain multiple equilibria in each case. We thus remind that the assumptions on intra-firm as well as on inter-firm competition may be relevant for determining the equilibrium pattern in a spatial model with location choice and various types of product differentiation.

Suggested Citation

  • Andreea Cosnita-Langlais, 2011. "Cournot competition in spatial markets: a complementary result on complementarity," Economics Bulletin, AccessEcon, vol. 31(3), pages 2454-2467.
    • Handle: RePEc:ebl:ecbull:eb-11-00529
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    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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