IDEAS home Printed from https://ideas.repec.org/h/spr/spochp/978-3-319-52654-6_2.html
   My bibliography  Save this book chapter

Partial Cooperation in Location Choice: Salop’s Model with Three Firms

In: Spatial Interaction Models

Author

Listed:
  • Subhadip Chakrabarti

    (Queen’s University of Belfast)

  • Robert P. Gilles

    (Queen’s University of Belfast)

Abstract

We consider how three firms compete in a Salop location model and how cooperation in location choice by two of these firms affects the outcomes. We consider the classical case of linear transportation costs as a two-stage game in which the firms select first a location on a unit circle along which consumers are dispersed evenly, followed by the competitive selection of a price. Standard analysis restricts itself to purely competitive selection of location; instead, we focus on the situation in which two firms collectively decide about location, but price their products competitively after the location choice has been effectuated. We show that such partial coordination of location is beneficial to all firms, since it reduces the number of equilibria significantly and, thereby, the resulting coordination problem. Subsequently, we show that the case of quadratic transportation costs changes the main conclusions only marginally.

Suggested Citation

  • Subhadip Chakrabarti & Robert P. Gilles, 2017. "Partial Cooperation in Location Choice: Salop’s Model with Three Firms," Springer Optimization and Its Applications, in: Lina Mallozzi & Egidio D'Amato & Panos M. Pardalos (ed.), Spatial Interaction Models, pages 21-38, Springer.
    • Handle: RePEc:spr:spochp:978-3-319-52654-6_2
    DOI: 10.1007/978-3-319-52654-6_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlos Hernán González-Campo & Vanessa Zamora Mina, 2020. "Comportamiento de los agentes en el comercio electrónico según modelos de localización," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, vol. 28(1), pages 47-65, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:spochp:978-3-319-52654-6_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.