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Equilibria for circular spatial Cournot markets

Author

Listed:
  • Daisuke Shimizu

    (Graduate School of Economics, University of Tokyo)

  • Toshihiro Matsumura

    (Institute of Social Science, University of Tokyo)

Abstract

This paper investigates a location-quantity model in a circular city. Pal (1998) investigates a duopoly model and finds that an equidistant location pattern appears in equilibrium. Matsushima (2001a) investigates an n-firm oligopoly model and shows that, if the number of firms is even, another equilibrium exists where half of the firms agglomerate at one point and the other firms agglomerate at the opposite point. We find that there exist many other equilibrium patterns that include the above two patterns as special cases.

Suggested Citation

  • Daisuke Shimizu & Toshihiro Matsumura, 2003. "Equilibria for circular spatial Cournot markets," Economics Bulletin, AccessEcon, vol. 18(1), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-03r30001
    as

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    File URL: http://www.accessecon.com/pubs/EB/2003/Volume18/EB-03R30001A.pdf
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    References listed on IDEAS

    as
    1. Hamilton, Jonathan H. & Thisse, Jacques-Francois & Weskamp, Anita, 1989. "Spatial discrimination : Bertrand vs. Cournot in a model of location choice," Regional Science and Urban Economics, Elsevier, vol. 19(1), pages 87-102, February.
    2. Noriaki Matsushima, 2001. "Horizontal Mergers and Merger Waves in a Location Model," Australian Economic Papers, Wiley Blackwell, vol. 40(3), pages 263-286, September.
    3. Eaton, B Curtis & Schmitt, Nicolas, 1994. "Flexible Manufacturing and Market Structure," American Economic Review, American Economic Association, vol. 84(4), pages 875-888, September.
    4. Pal, Debashis, 1998. "Does Cournot competition yield spatial agglomeration?," Economics Letters, Elsevier, vol. 60(1), pages 49-53, July.
    5. Matsushima, Noriaki, 2001. "Cournot competition and spatial agglomeration revisited," Economics Letters, Elsevier, vol. 73(2), pages 175-177, November.
    6. 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.
    7. repec:bla:ausecp:v:40:y:2001:i:3:p:263-86 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Pierre Picard & Takatoshi Tabuchi, 2010. "Self-organized agglomerations and transport costs," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 42(3), pages 565-589, March.
    2. PICARD, Pierre & TABUCHI, Takatoshi, 2003. "Natural agglomeration," LIDAM Discussion Papers CORE 2003101, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. AGO Takanori, 2015. "Competition between Cities and Their Spatial Structure," Discussion papers 15110, Research Institute of Economy, Trade and Industry (RIETI).
    4. Toshihiro Matsumura & Daisuke Shimizu, 2008. "A Noncooperative Shipping Cournot Duopoly With Linear‐Quadratic Transport Costs And Circular Space," The Japanese Economic Review, Japanese Economic Association, vol. 59(4), pages 498-518, December.
    5. Takanori Ago, 2013. "Demand creation and location: a variable consumer-distribution approach in spatial competition," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(3), pages 775-792, December.
    6. Toshihiro Matsumura & Daisuke Shimizu, 2009. "Equilibrium Location and Economic Welfare in Delivered Pricing Oligopoly," Economics Bulletin, AccessEcon, vol. 29(2), pages 760-768.
    7. Wen-Chung Guo & Fu-Chuan Lai, 2020. "Spatial Cournot competition in two intersecting circular markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 37-56, February.
    8. Takeshi Ebina & Toshihiro Matsumura & Daisuke Shimizu, 2009. "Mixed oligopoly and spatial agglomeration in quasi-linear city," Economics Bulletin, AccessEcon, vol. 29(4), pages 2722-2729.
    9. Francisco J Martinez & Loreto Tamblay & Andrés Weintraub, 2011. "School Locations and Vacancies: A Constrained Logit Equilibrium Model," Environment and Planning A, , vol. 43(8), pages 1853-1874, August.

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    More about this item

    Keywords

    circular city;

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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