Spatial competition with concave transport costs

M. A. De Frutos; H. Hamoudi; X. Jarque

doi:10.1016/S0166-0462(01)00094-1

Spatial competition with concave transport costs

M. A. De Frutos, H. Hamoudi, X. Jarque

Department of Economics and Economic History

Research output: Contribution to journal › Article › Research › peer-review

16 Citations (Scopus)

Abstract

We study the location-then-price game played by two firms in a circular market when consumers face non-linear transport costs. We show that for any convex transport cost function there exists a concave one such that the location-then-price games induced by these functions are strategically equivalent. Further, we provide a sufficient condition to guarantee that a similar equivalence result holds under oligopolistic competition among equidistant firms. © 2002 Elsevier Science B.V. All rights reserved.

Original language	English
Pages (from-to)	531-540
Journal	Regional Science and Urban Economics
Volume	32
Issue number	4
DOIs	https://doi.org/10.1016/S0166-0462(01)00094-1
Publication status	Published - 29 Jun 2002

Keywords

Equilibria
Oligopoly
Spatial competition

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10.1016/S0166-0462(01)00094-1

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abstract = "We study the location-then-price game played by two firms in a circular market when consumers face non-linear transport costs. We show that for any convex transport cost function there exists a concave one such that the location-then-price games induced by these functions are strategically equivalent. Further, we provide a sufficient condition to guarantee that a similar equivalence result holds under oligopolistic competition among equidistant firms. {\textcopyright} 2002 Elsevier Science B.V. All rights reserved.",

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AU - Jarque, X.

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N2 - We study the location-then-price game played by two firms in a circular market when consumers face non-linear transport costs. We show that for any convex transport cost function there exists a concave one such that the location-then-price games induced by these functions are strategically equivalent. Further, we provide a sufficient condition to guarantee that a similar equivalence result holds under oligopolistic competition among equidistant firms. © 2002 Elsevier Science B.V. All rights reserved.

AB - We study the location-then-price game played by two firms in a circular market when consumers face non-linear transport costs. We show that for any convex transport cost function there exists a concave one such that the location-then-price games induced by these functions are strategically equivalent. Further, we provide a sufficient condition to guarantee that a similar equivalence result holds under oligopolistic competition among equidistant firms. © 2002 Elsevier Science B.V. All rights reserved.

KW - Equilibria

KW - Oligopoly

KW - Spatial competition

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DO - 10.1016/S0166-0462(01)00094-1

M3 - Article

VL - 32

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ER -

Spatial competition with concave transport costs

Abstract

Keywords

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