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Cournot competition and location choice with wage bargaining

Author

Listed:
  • Qiang Wang

    (College of Economics and Management,Nanjing University of Aeronautics and Astronautics)

  • Qi Chen

    (College of Economics and Management,Nanjing University of Aeronautics and Astronautics)

Abstract

Equilibrium locations are analyzed in location-quantity games, in which firms acquire labor inputs through bilateral monopoly relations with independent labor union. We find that the pattern of locations varies as the transport rate increase in a linear city. In a circular city, firms locate equidistant form each other.

Suggested Citation

  • Qiang Wang & Qi Chen, 2008. "Cournot competition and location choice with wage bargaining," Economics Bulletin, AccessEcon, vol. 12(22), pages 1-5.
    • Handle: RePEc:ebl:ecbull:eb-08l10020
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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume12/EB-08L10020A.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.
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    11. repec:ebl:ecbull:v:12:y:2007:i:1:p:1-7 is not listed on IDEAS
    12. 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. Ricardo Biscaia & Isabel Mota, 2013. "Models of spatial competition: A critical review," Papers in Regional Science, Wiley Blackwell, vol. 92(4), pages 851-871, November.

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    More about this item

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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