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Spatial Cournot competition with non-extreme directional constraints

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  • Stefano Colombo

Abstract

The circular city model and the linear city model are extended to allow for asymmetric directional transportation costs. A two-stage location-then-quantity model is proposed. We show that in the circular city model, maximal dispersion arises in equilibrium, while in the linear city model, the unique equilibrium is represented by both firms agglomerating in a non-central point of the segment. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Stefano Colombo, 2013. "Spatial Cournot competition with non-extreme directional constraints," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(3), pages 761-774, December.
    • Handle: RePEc:spr:anresc:v:51:y:2013:i:3:p:761-774
    DOI: 10.1007/s00168-013-0560-6
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    References listed on IDEAS

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    1. Nilssen, Tore, 1997. "Sequential location when transportation costs are asymmetric," Economics Letters, Elsevier, vol. 54(2), pages 191-201, February.
    2. Stefano Colombo, 2011. "Spatial price discrimination in the unidirectional Hotelling model with elastic demand," Journal of Economics, Springer, vol. 102(2), pages 157-169, March.
    3. 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.
    4. Chia-Hung Sun, 2010. "Spatial Cournot competition in a circular city with directional delivery constraints," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(2), pages 273-289, October.
    5. Stefano Colombo, 2009. "The unidirectional Hotelling model with spatial price discrimination," Economics Bulletin, AccessEcon, vol. 29(4), pages 3031-3040.
    6. Lai, Fu-Chuan, 2001. "Sequential locations in directional markets," Regional Science and Urban Economics, Elsevier, vol. 31(5), pages 535-546, September.
    7. Mohammed Kharbach, 2009. "A Unidirectional Hotelling Model," Economics Bulletin, AccessEcon, vol. 29(3), pages 1814-1819.
    8. Chia-Hung Sun, 2012. "Sequential location in a discrete directional market with three or more players," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 101-122, February.
    9. Kai Andree, 2011. "Product differentiation and spatial agglomeration in a unidirectional Cournot model," Letters in Spatial and Resource Sciences, Springer, vol. 4(3), pages 167-172, October.
    10. Cancian, Maria & Bills, Angela & Bergstrom, Theodore, 1995. "Hotelling Location Problems with Directional Constraints: An Application to Television News Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 121-124, March.
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    Cited by:

    1. Stefano Colombo, 2016. "Location choices with a non-linear demand function," Papers in Regional Science, Wiley Blackwell, vol. 95, pages 215-226, March.
    2. Stefano Colombo, 2016. "A Model of Three Cities," International Regional Science Review, , vol. 39(4), pages 386-416, October.

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    More about this item

    Keywords

    D43; L13;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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