In this paper we extend the analysis of the standard model of spatial discrimination with quantity competition along the linear city to the case in which the unit transportation cost is greater than one. We show that in such a case the unique subgame perfect Nash equilibrium in locations is a dispersed symmetric equilibrium. Moreover, at this equilibrium firms' locations are not monotone in the transportation cost parameter. Codice Scopus: 2-s2.0-34548858164

Spatial discrimination with quantity competition and high transportation costs: A note

CHIRCO, Alessandra;SCRIMITORE, Marcella
2007-01-01

Abstract

In this paper we extend the analysis of the standard model of spatial discrimination with quantity competition along the linear city to the case in which the unit transportation cost is greater than one. We show that in such a case the unique subgame perfect Nash equilibrium in locations is a dispersed symmetric equilibrium. Moreover, at this equilibrium firms' locations are not monotone in the transportation cost parameter. Codice Scopus: 2-s2.0-34548858164
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11587/300387
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