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Optimal zoning of a mixed duopoly

Author

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  • Juan Bárcena Ruiz

    ()

  • F. Casado-Izaga

    ()

  • Hamid Hamoudi

    ()

Abstract

This paper studies the optimal zoning of a mixed duopoly when the objective function of the public firm is a weighted sum of its profits and social surplus. We find that a regulator may attain the optimal locations of both firms by restricting the location of the private firm only. There is no need to limit the location of the public firm. In contrast, in a private duopoly, the regulator needs to restrict the locations of both firms. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Juan Bárcena Ruiz & F. Casado-Izaga & Hamid Hamoudi, 2014. "Optimal zoning of a mixed duopoly," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 141-153, January.
  • Handle: RePEc:spr:anresc:v:52:y:2014:i:1:p:141-153
    DOI: 10.1007/s00168-013-0579-8
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    References listed on IDEAS

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    1. Akira Ogawa & Kazuhiko Kato, 2006. "Price Competition in a Mixed Duopoly," Economics Bulletin, AccessEcon, vol. 12(4), pages 1-5.
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    Citations

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    Cited by:

    1. Juan Carlos Bárcena-Ruiz & F. Javier Casado-Izaga, 2017. "Zoning A Cross-Border City," Journal of Regional Science, Wiley Blackwell, vol. 57(1), pages 173-189, January.
      • Bárcena Ruiz, Juan Carlos & Casado Izaga, Francisco Javier, 2015. "Zoning a cross-border city," IKERLANAK Ikerlanak;2015-89, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    2. Juan Carlos Bárcena-Ruiz & F. Javier Casado-Izaga, 2016. "Foreign-owned firms and zoning under spatial price discrimination," Letters in Spatial and Resource Sciences, Springer, vol. 9(2), pages 145-155, July.
    3. Beladi, Hamid & Chakrabarti, Avik & Marjit, Sugata, 2014. "A public firm in a model of spatial duopoly with price discrimination," Economics Letters, Elsevier, vol. 123(1), pages 79-81.

    More about this item

    Keywords

    L13; R38;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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