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Spatial Cournot equilibria in a quasi†linear city

Author

Listed:
  • Ebina, Takeshi
  • Matsumura, Toshihiro
  • Shimizu, Daisuke

Abstract

We investigate equilibrium locations of a spatial Cournot competition model that includes both circular city and linear city models as special cases. We find that the equilibrium location is discontinuous with respect to parameter β (β= 0 implies circular and β= 1 implies linear), and multiple equilibria appear for some range of β. The location pattern becomes exactly the same as that of the linear city for a wide range of β, while it exactly matches that of circular city only when β = 0. This implies the property of the linear city holds for non†measure zero case, while circular city does not.

Suggested Citation

Handle: RePEc:eee:paresc:v:90:y:2011:i:3:p:613-629
DOI: 10.1111/j.1435-5957.2010.00333.x
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JEL classification:

  • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
  • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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