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On the rationale of spatial discrimination with quantity-setting firms

  • Colombo, Stefano

We show in a game-theoretic model that when quantity-setting firms first choose whether to discriminate or not and then set quantities, the unique equilibrium consists in all firms selling a uniform quantity to all consumers. This sharply contrasts with the case of price-setting firms.

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Article provided by Elsevier in its journal Research in Economics.

Volume (Year): 65 (2011)
Issue (Month): 3 (September)
Pages: 254-258

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Handle: RePEc:eee:reecon:v:65:y:2011:i:3:p:254-258
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622941

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  1. Toshihiro Matsumura & Daisuke Shimizu, 2006. "Cournot and Bertrand in shipping models with circular markets," Papers in Regional Science, Wiley Blackwell, vol. 85(4), pages 585-598, November.
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  4. Matsushima, Noriaki, 2001. "Cournot competition and spatial agglomeration revisited," Economics Letters, Elsevier, vol. 73(2), pages 175-177, November.
  5. 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.
  6. Takeshi Ebina & Toshihiro Matsumura & Daisuke Shimizu, 2009. "Mixed oligopoly and spatial agglomeration in quasi-linear city," Economics Bulletin, AccessEcon, vol. 29(4), pages 2722-2729.
  7. repec:ebl:ecbull:v:4:y:2004:i:15:p:1-6 is not listed on IDEAS
  8. Debashis Pal & Jyotirmoy Sarkar, 2006. "Spatial Cournot Competition among Multi-Plant Firms in a Circular City," Southern Economic Journal, Southern Economic Association, vol. 73(1), pages 246–258, July.
  9. Li, Changying, 2006. "Location choice in a mixed oligopoly," Economic Modelling, Elsevier, vol. 23(1), pages 131-141, January.
  10. Eber, Nicolas, 1997. "A note on the strategic choice of spatial price discrimination," Economics Letters, Elsevier, vol. 55(3), pages 419-423, September.
  11. Pal, Debashis, 1998. "Does Cournot competition yield spatial agglomeration?," Economics Letters, Elsevier, vol. 60(1), pages 49-53, July.
  12. Matsumura, Toshihiro & Shimizu, Daisuke, 2005. "Spatial Cournot competition and economic welfare: a note," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 658-670, November.
  13. Anderson, Simon P & Neven, Damien J, 1991. "Cournot Competition Yields Spatial Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 793-808, November.
  14. María Isabel Berenguer Maldonado & Santiago Carbó Valverde & Miguel Ángel Fortes Escalona, 2005. "Cournot Competition In A Two-Dimensional Circular City," Manchester School, University of Manchester, vol. 73(1), pages 40-49, 01.
  15. Barnali Gupta & Debashis Pal & Jyotirmoy Sarkar, 2006. "Product Differentiation and Location Choice in a Circular City," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 313-331.
  16. Gupta, Barnali & Lai, Fu-Chuan & Pal, Debashis & Sarkar, Jyotirmoy & Yu, Chia-Ming, 2004. "Where to locate in a circular city?," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 759-782, June.
  17. John Gross & William L. Holahan, 2003. "Credible Collusion in Spatially Separated Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(1), pages 299-312, February.
  18. Chamorro-Rivas, Jose-Maria, 2000. "Plant proliferation in a spatial model of Cournot competition," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 507-518, September.
  19. Mayer, Thierry, 2000. "Spatial Cournot competition and heterogeneous production costs across locations," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 325-352, May.
  20. Toshihiro Matsumura, 2003. "Consumer-benefiting exclusive territories," Canadian Journal of Economics, Canadian Economics Association, vol. 36(4), pages 1007-1025, November.
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  22. Matsumura, Toshihiro & Okamura, Makoto, 2006. "Equilibrium number of firms and economic welfare in a spatial price discrimination model," Economics Letters, Elsevier, vol. 90(3), pages 396-401, March.
  23. Shimizu, Daisuke, 2002. "Product differentiation in spatial Cournot markets," Economics Letters, Elsevier, vol. 76(3), pages 317-322, August.
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