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Модель Линейного Города С Экзогенной Конкуренцией По Штакельбергу
[Line City Model with Exogenous Stackelberg Competition]

Author

Listed:
  • Torbenko, Alexander

Abstract

The paper considers the line city model of spatial competition with the exogenous Stackelberg competition. With low transport costs, firms' equilibrium locations are in the center of the market. The leader profit is twice as big as the follower's profit, the price is minimum and the quantity is maximum in the center of the market. With high transport costs, firms are differentiated and the market splits into two submarkets. Both the leader and the follower sell the largest share of their goods near their location. The price is minimum in the leader's location. Then transport costs are rising, while the price is increasing and the quantity of goods is decreasing.

Suggested Citation

  • Torbenko, Alexander, 2013. "Модель Линейного Города С Экзогенной Конкуренцией По Штакельбергу [Line City Model with Exogenous Stackelberg Competition]," MPRA Paper 46921, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:46921
    as

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    File URL: https://mpra.ub.uni-muenchen.de/50399/1/MPRA_paper_46921.pdf
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    References listed on IDEAS

    as
    1. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    2. Edward C. Prescott & Michael Visscher, 1977. "Sequential Location among Firms with Foresight," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 378-393, Autumn.
    3. Meza, Sergio & Tombak, Mihkel, 2009. "Endogenous location leadership," International Journal of Industrial Organization, Elsevier, vol. 27(6), pages 687-707, November.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • 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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