Spatial competition with concave transport costs

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

Research output: Contribution to journalArticleResearchpeer-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 languageEnglish
Pages (from-to)531-540
JournalRegional Science and Urban Economics
Volume32
Issue number4
DOIs
Publication statusPublished - 29 Jun 2002

Keywords

  • Equilibria
  • Oligopoly
  • Spatial competition

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