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Subsidy Competition in Networks

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  • H.A. Eiselt

    (University of New Brunswick)

Abstract

This paper investigates a competitive location model on a network with free entry and exit. The given network consists of regions that represent independent jurisdictions. Market entry and exit are sequential. In each stage of the multi-stage game, the regions simultaneously decide what subsidy to offer to a firm should it located within its boundaries. The paper delineates three distinct classes of subsidy policies and examines their effects in a series of computational tests.

Suggested Citation

  • H.A. Eiselt, 2000. "Subsidy Competition in Networks," Computational and Mathematical Organization Theory, Springer, vol. 6(1), pages 99-111, May.
    • Handle: RePEc:spr:comaot:v:6:y:2000:i:1:d:10.1023_a:1009629410788
    DOI: 10.1023/A:1009629410788
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    References listed on IDEAS

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    Cited by:

    1. Drezner, Zvi & Eiselt, H.A., 2024. "Competitive location models: A review," European Journal of Operational Research, Elsevier, vol. 316(1), pages 5-18.

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