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 |
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Pages (from-to) | 531-540 |
Journal | Regional Science and Urban Economics |
Volume | 32 |
Issue number | 4 |
DOIs | |
Publication status | Published - 29 Jun 2002 |
Keywords
- Equilibria
- Oligopoly
- Spatial competition