Spatial Cournot competition with non-extreme directional constraints

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3 Citations (Scopus)

Abstract

The circular city model and the linear city model are extended to allow for asymmetric directional transportation costs. A two-stage location-then-quantity model is proposed. We show that in the circular city model maximal dispersion arises in equilibrium, while in the linear city model the unique equilibrium is represented by both firms agglomerating in a non-central point of the segment.
Original languageEnglish
Pages (from-to)761-774
Number of pages14
JournalTHE ANNALS OF REGIONAL SCIENCE
Publication statusPublished - 2013

Keywords

  • Spatial Cournot competition

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