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Mixed oligopoly and spatial agglomeration: a comment

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  • Oscar J Cárdenas

Abstract

. This paper extends Matsushima and Matsumura (2003) by incorporating a large production cost difference between public and private firms in a quantity setting spatial mixed oligopoly. The public and private firms first choose their locations in a linear market and then compete in quantities. It is shown that for a significant inefficiency of the public firm, all firms (including both public and private firms) agglomerate at the market centre. Ce texte développe les résultats de Matsushima et Matsumura (2003) en incorporant la possibilité d'une grande différence de coûts de production entre l'entreprise publique et les entreprises privées dans un oligopole spatial mixte de concurrence par les quantités. Les entreprises (publiques et privées) choisissent leur localisation dans un marché linéaire et se concurrencent par les quantités. On montre que, s'il existe une inefficacité significative de l'entreprise publique, toutes les entreprises (publiques et privées) tendent à s'agglomérer au centre du marché.

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  • Oscar J Cárdenas, 2007. "Mixed oligopoly and spatial agglomeration: a comment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(1), pages 340-346, February.
    • Handle: RePEc:wly:canjec:v:40:y:2007:i:1:p:340-346
    DOI: 10.1111/j.1365-2966.2007.00394.x
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    References listed on IDEAS

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    1. Cremer, Helmuth & Marchand, Maurice & Thisse, Jacques-Francois, 1989. "The Public Firm as an Instrument for Regulating an Oligopolistic Market," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 283-301, April.
    2. Noriaki Matsushima & Toshihiro Matsumura, 2003. "Mixed oligopoly and spatial agglomeration," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 62-87, February.
    3. Estrin, Saul & Perotin, Virginie, 1991. "Does ownership always matter?," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 55-72, March.
    4. Anderson, Simon P & Neven, Damien J, 1991. "Cournot Competition Yields Spatial Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 793-808, November.
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    Cited by:

    1. Jie Shuai, 2017. "A comment on mixed oligopoly spatial model: the non-uniform consumer distribution," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(1), pages 57-63, April.

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