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Cournot competition in spatial markets: Some further results

  • Chia-Ming Yu

    ()

  • Fu-Chuan Lai

    ()

In contrast to most of the literature on a circular market in which firms choose to disperse equally from each other in equilibrium, this research note shows that the equal-distance dispersion in a circular market results from the substitutability of products produced by two single-plant duopoly firms. Meanwhile, agglomeration at one point results from complementarity. In the multi-plant duopoly case, we find - in contrast to Chamorro-Rivas (2000) - that when firms sell complements, the equilibrium locations tend to exhibit both inter-firm agglomeration and intra-firm dispersion. In other words, the location layout in equilibrium exhibits spatial agglomeration (by pairs) finitely at many points. Copyright Springer-Verlag Berlin/Heidelberg 2003

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File URL: http://hdl.handle.net/10.1007/s10110-003-0154-2
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Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 82 (2003)
Issue (Month): 4 (November)
Pages: 569-580

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Handle: RePEc:spr:ecogov:v:82:y:2003:i:4:p:569-580
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