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Partial Agglomeration or Dispersion in Spatial Cournot Competition

Author

Listed:
  • Toshihiro Matsumura

    () (Institute of Social Science, University of Tokyo)

  • Takao Ohkawa

    () (Department of Economics, Ritsumeikan University)

  • Daisuke Shimizu

    () (Institute of Social Science, University of Tokyo)

Abstract

We revisit works by Pal and Matsushima, which, respectively, present different equilibrium locations. We consider nonlinear transport costs and show that Pal's result (dispersion) is more robust than Matsushima's (partial agglomeration). Pal's result holds true for any transport cost function, while Matsushima's does not hold under strong concavity or convexity of the transport cost function. If we consider sequential move of location, Pal's result holds for any transport costs. On the other hand, Matsushima's does not hold except for linear transport cost. We also discuss welfare and show that nonlinearity of the transport cost function yields rich welfare implications.

Suggested Citation

  • Toshihiro Matsumura & Takao Ohkawa & Daisuke Shimizu, 2005. "Partial Agglomeration or Dispersion in Spatial Cournot Competition," Southern Economic Journal, Southern Economic Association, vol. 72(1), pages 224-235, July.
  • Handle: RePEc:sej:ancoec:v:72:1:y:2005:p:224-235
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    Citations

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    Cited by:

    1. Takanori Ago, 2013. "Demand creation and location: a variable consumer-distribution approach in spatial competition," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(3), pages 775-792, December.
    2. Ricardo Biscaia & Isabel Mota, 2013. "Models of spatial competition: A critical review," Papers in Regional Science, Wiley Blackwell, vol. 92(4), pages 851-871, November.
    3. repec:bla:jecrev:v:68:y:2017:i:4:p:413-442 is not listed on IDEAS
    4. Toshihiro Matsumura & Daisuke Shimizu, 2009. "Equilibrium Location and Economic Welfare in Delivered Pricing Oligopoly," Economics Bulletin, AccessEcon, vol. 29(2), pages 760-768.
    5. Inoue, Tomohiro & Kamijo, Yoshio & Tomaru, Yoshihiro, 2009. "Interregional mixed duopoly," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 233-242, March.
    6. Toshihiro Matsumura & Noriaki Matsushima, 2012. "Spatial Cournot competition and transportation costs in a circular city," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 33-44, February.
    7. repec:bla:presci:v:96:y:2017:i:1:p:211-219 is not listed on IDEAS
    8. 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.
    9. Toshihiro Matsumura & Daisuke Shimizu, 2008. "A Noncooperative Shipping Cournot Duopoly With Linear-Quadratic Transport Costs And Circular Space," The Japanese Economic Review, Japanese Economic Association, vol. 59(4), pages 498-518.

    More about this item

    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
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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