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Credible collusion in a model of spacial competition


  • Raquel Arévalo Tomé
  • José María Chamorro Rivas


In a spatial model with quantity setting firms, we analyze the possibility of cooperation in a long term relationship, where firms compete in location. It is found that endogeneizing the location decisions makes collusion more difficult.

Suggested Citation

  • Raquel Arévalo Tomé & José María Chamorro Rivas, 2004. "Credible collusion in a model of spacial competition," Working Papers 0404, Universidade de Vigo, Departamento de Economía Aplicada.
  • Handle: RePEc:vig:wpaper:0404

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    References listed on IDEAS

    1. 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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    More about this item


    Supergames; spatial competition;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms


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