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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.

Suggested Citation

  • Colombo, Stefano, 2011. "On the rationale of spatial discrimination with quantity-setting firms," Research in Economics, Elsevier, vol. 65(3), pages 254-258, September.
  • Handle: RePEc:eee:reecon:v:65:y:2011:i:3:p:254-258

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    References listed on IDEAS

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    Cited by:

    1. Stefano Colombo, 2014. "Fee versus royalty licensing in spatial Cournot competition," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(3), pages 859-879, May.
    2. Stefano Colombo, 2012. "On optimal zoning in a linear town with Cournot competitors," Letters in Spatial and Resource Sciences, Springer, vol. 5(2), pages 113-118, July.
    3. repec:rfe:zbefri:v:35:y:2017:i:1:p:151-171 is not listed on IDEAS


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