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Where to locate to escape predation?

Author

Listed:
  • Andreea Cosnita-Langlais

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

Abstract

We study the credibility of predation to deter entry in the linear Cournot shipping model of spatial competition with strategic location choice, both on the linear and circular markets. For a high enough discount factor, the monopoly is preserved, but the credibility of predatory conduct is lower on the circular than on the linear market.

Suggested Citation

  • Andreea Cosnita-Langlais, 2014. "Where to locate to escape predation?," Economics Bulletin, AccessEcon, vol. 34(2), pages 614-626.
  • Handle: RePEc:ebl:ecbull:eb-13-00115
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    References listed on IDEAS

    as
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    4. Lindsey, Robin & West, Douglas S., 2003. "Predatory pricing in differentiated products retail markets," International Journal of Industrial Organization, Elsevier, vol. 21(4), pages 551-592, April.
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    6. Gotz, Georg, 2005. "Endogenous sequential entry in a spatial model revisited," International Journal of Industrial Organization, Elsevier, vol. 23(3-4), pages 249-261, April.
    7. Hamilton, Jonathan H. & Thisse, Jacques-Francois & Weskamp, Anita, 1989. "Spatial discrimination : Bertrand vs. Cournot in a model of location choice," Regional Science and Urban Economics, Elsevier, vol. 19(1), pages 87-102, February.
    8. Stefano Colombo, 2013. "Predation in Space," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(1), pages 9-22, March.
    9. Andreea Cosnita, 2005. "Horizontal mergers in the circular city: a note," Economics Bulletin, AccessEcon, vol. 12(7), pages 1-10.
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    14. Takeshi Ebina & Toshihiro Matsumura & Daisuke Shimizu, 2011. "Spatial Cournot equilibria in a quasi‐linear city," Papers in Regional Science, Wiley Blackwell, vol. 90(3), pages 613-628, August.
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    More about this item

    Keywords

    predatory conduct; spatial Cournot competition; strategic location choice;

    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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