Location choices with a non-linear demand function

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

7 Citazioni (Scopus)

Abstract

This paper introduces a non-linear hyperbolic demand function in a spatial shipping model. We show that, in contrast with the linear demand case, dispersion of firms emerges in equilibrium both when the firms compete through quantities and when they compete through prices. Further, the impact of the marginal production costs on the degree of firms' dispersion in equilibrium is positive when firms compete with prices, and it is inverse U-shape when firms compete with quantities.
Lingua originaleEnglish
pagine (da-a)S215-S226
RivistaPapers in Regional Science
Volume95
DOI
Stato di pubblicazionePubblicato - 2016

Keywords

  • location

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