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Spatial Cournot competition in a linear–circular market

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  • Wen-Chung Guo
  • Fu-Chuan Lai

Abstract

This paper explores a linear and circular model with spatial Cournot competition. It is shown that agglomeration of firms at the center of the main street is the equilibrium when the demand density on the main street (linear market) is high, and there exists a unique separated location equilibrium when the density is moderate. Moreover, the socially desirable interior locations are more dispersed than the equilibrium ones. Finally, extensions on tax policies, nonlinear demand, non-uniform distribution, and others are also discussed. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Wen-Chung Guo & Fu-Chuan Lai, 2015. "Spatial Cournot competition in a linear–circular market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 819-834, May.
    • Handle: RePEc:spr:anresc:v:54:y:2015:i:3:p:819-834
    DOI: 10.1007/s00168-015-0687-8
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    References listed on IDEAS

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    1. Aizawa, Hiroki & Kono, Tatsuhito, 2022. "Two-dimensional Geographical Position as a Factor in Determining the Growth and Decline of Retail Agglomeration," MPRA Paper 112274, University Library of Munich, Germany.

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    More about this item

    Keywords

    D43; L13;

    JEL classification:

    • 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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