Spatial Cournot competition with non-extreme directional constraints
The circular city model and the linear city model are extended to allow for asymmetric directional transportation costs. A two-stage location-then-quantity model is proposed. We show that in the circular city model, maximal dispersion arises in equilibrium, while in the linear city model, the unique equilibrium is represented by both firms agglomerating in a non-central point of the segment. Copyright Springer-Verlag Berlin Heidelberg 2013
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Volume (Year): 51 (2013)
Issue (Month): 3 (December)
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- Lai, Fu-Chuan, 2001. "Sequential locations in directional markets," Regional Science and Urban Economics, Elsevier, vol. 31(5), pages 535-546, September.
- Nilssen, Tore, 1997.
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- Stefano Colombo, 2011. "Spatial price discrimination in the unidirectional Hotelling model with elastic demand," Journal of Economics, Springer, vol. 102(2), pages 157-169, March.
- Mohammed Kharbach, 2009. "A Unidirectional Hotelling Model," Economics Bulletin, AccessEcon, vol. 29(3), pages 1814-1819.
- Stefano Colombo, 2009. "The unidirectional Hotelling model with spatial price discrimination," Economics Bulletin, AccessEcon, vol. 29(4), pages 3031-3040.
- Kai Andree, 2011. "Product differentiation and spatial agglomeration in a unidirectional Cournot model," Letters in Spatial and Resource Sciences, Springer, vol. 4(3), pages 167-172, October.
- Cancian, Maria & Bills, Angela & Bergstrom, Theodore, 1995. "Hotelling Location Problems with Directional Constraints: An Application to Television News Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 121-124, March. Full references (including those not matched with items on IDEAS)
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