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Where to locate to escape predation?

Author

Listed:
  • Andreea Cosnita-Langlais

    (EconomiX-CNRS and Université Paris Ouest Nanterre La Défense)

Abstract

We study the credibility of predation to deter entry in the linear Cournot shipping model of spatial competition with strategic location choice, both on the linear and circular markets. For a high enough discount factor, the monopoly is preserved, but the credibility of predatory conduct is lower on the circular than on the linear market.

Suggested Citation

  • Andreea Cosnita-Langlais, 2014. "Where to locate to escape predation?," Economics Bulletin, AccessEcon, vol. 34(2), pages 614-626.
    • Handle: RePEc:ebl:ecbull:eb-13-00115
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    predatory conduct; spatial Cournot competition; strategic location choice;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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