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Credible collusion in a model of spatial competition

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  • Raquel Arévalo Tomé
  • José‐María Chamorro‐Rivas

Abstract

. In a spatial model with quantity setting firms, we analyse the possibility of cooperation in a long‐term relationship, where firms compete in location. It is found that endogenizing the location decisions makes collusion more difficult.

Suggested Citation

  • Raquel Arévalo Tomé & José‐María Chamorro‐Rivas, 2007. "Credible collusion in a model of spatial competition," Papers in Regional Science, Wiley Blackwell, vol. 86(4), pages 633-642, November.
    • Handle: RePEc:bla:presci:v:86:y:2007:i:4:p:633-642
    DOI: 10.1111/j.1435-5957.2007.00138.x
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    References listed on IDEAS

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    1. Fudenberg, Drew & Tirole, Jean, 1989. "Noncooperative game theory for industrial organization: An introduction and overview," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 5, pages 259-327, Elsevier.
    2. John Gross & William L. Holahan, 2003. "Credible Collusion in Spatially Separated Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(1), pages 299-312, February.
    3. Anderson, Simon P & Neven, Damien J, 1991. "Cournot Competition Yields Spatial Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 793-808, November.
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    Cited by:

    1. Stefano Colombo, 2013. "Product Differentiation and Collusion Sustainability When Collusion Is Costly," Marketing Science, INFORMS, vol. 32(4), pages 669-674, July.

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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