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Duopolistic Competition On a Plane

Author

Listed:
  • Davit Maskharashvilia

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic)

Abstract

The paper models duopolistic competition in so called monotowns: towns with one big factory where most of the citizens are employed. Workers after job go to one of the competitor shops, buy the product and bring it home. Nash equilibrium is found for linear and two-dimensional cases. The principle of maximum differentiation is refuted.

Suggested Citation

  • Davit Maskharashvilia, 2019. "Duopolistic Competition On a Plane," Working Papers IES 2019/1, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Feb 2019.
    • Handle: RePEc:fau:wpaper:wp2019_01
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    File URL: http://ies.fsv.cuni.cz/sci/publication/show/id/6017/lang/cs
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    More about this item

    Keywords

    spatial competition; two-dimensional city;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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