Spatial Configurations, Competition and Welfare
Studies into the shapes of market areas abound and emphasize the hexagon as the optimal configuration. This paper demonstrates that a triangular or a square market area can be superior to a hexagonal one under certain behavioral conditions. Spatial configurations are evaluated on the basis of (1) the number of firms required to fill a given market area and (2) the level of welfare per unit area that these firms generate under alternative competitive conditions.
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Volume (Year): 24 (1990)
Issue (Month): 1 ()
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