Spatial Cournot Oligopoly with Vertical Linkages
This paper examines the equilibrium of location of N vertically-linked firms. In a spatial economy composed of two regions, a monopolist firm supplies an input to N consumer goods firms that compete in quantities. It was concluded that, when there are increases in the transport cost of the input, downstream firms prefer to agglomerate in the region where the upstream firm is located, in order to obtain savings in the production cost. On the other hand, increases in the general transport cost or in the number of downstream firms lead to a dispersion of these firms, in order to reduce competition and locate closer to the final consumer.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL|
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC
References listed on IDEAS
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- Paul Belleflamme & Eric Toulemonde, 2003.
"Product differentiation in successive vertical oligopolies,"
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- Paul Belleflamme & Eric Toulemonde, 2000. "Product Differentiation in Successive Vertical Oligopolies," Working Papers 421, Queen Mary University of London, School of Economics and Finance.
- BELLEFLAMME, Paul & TOULEMONDE, Eric, . "Product differentiation in successive vertical oligopolies," CORE Discussion Papers RP 1720, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- Fujita, M. & Thisse, J.-F., . "Economics of agglomeration," CORE Discussion Papers RP 1250, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Fujita, Masahisa & Thisse, Jacques-François, 1996. "Economics of Agglomeration," CEPR Discussion Papers 1344, C.E.P.R. Discussion Papers.
- Thierry Mayer, 2000.
"Spatial Cournot Competition and Heterogeneous Production Costs Across Locations,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Mayer, Thierry, 2000. "Spatial Cournot competition and heterogeneous production costs across locations," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 325-352, May.
- Mayer, T., 1999. "Spatial Cournot Competition and Heterogeneous Production Costs Across Locations," Papiers d'Economie MathÃ©matique et Applications 1999.89, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- José Pontes, 2005. "Agglomeration in a vertically-related oligopoly," Portuguese Economic Journal, Springer, vol. 4(2), pages 157-169, 08.
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