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The Implications of Space for Competition

Author

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  • Scotchmer, Suzanne
  • Thisse, Jacques-François

Abstract

Incorporating space in economic models has two important consequences. First, the hypothesis of perfect competition becomes untenable, and second, the distinction between private and public goods becomes blurred. We review arguments that lead to these conclusions and summarize recent work pointing to other incentive systems that might lead to efficient location decisions and pricing policies.

Suggested Citation

  • Scotchmer, Suzanne & Thisse, Jacques-François, 1992. "The Implications of Space for Competition," CEPR Discussion Papers 724, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:724
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    Citations

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    Cited by:

    1. Puga, Diego, 1996. "Urbanisation patterns: European vs less developed countries," LSE Research Online Documents on Economics 20656, London School of Economics and Political Science, LSE Library.
    2. Mengqiu Lu & Yu Chen & Robin Morphet & Yuqi Lu & Enkang Li, 2019. "The spatial competition between containerised rail and sea transport in Eurasia," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-11, December.
    3. Abeygunawardane, Dilini & Kronenburg García, Angela & Sun, Zhanli & Müller, Daniel & Sitoe, Almeida & Meyfroidt, Patrick, 2022. "Resource frontiers and agglomeration economies: The varied logics of transnational land-based investing in Southern and Eastern Africa," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 51(6), pages 1535-1551.
    4. Ottaviano, Gianmarco I. P. & Puga, Diego, 1997. "Agglomeration in a global economy: a survey," LSE Research Online Documents on Economics 20324, London School of Economics and Political Science, LSE Library.
    5. Sébastien Liarte & Bernard Forgues, 2008. "Location strategies of multiunit service businesses: spatial differentiation and agglomeration among hamburger restaurants in Paris, 1984–2004," Service Business, Springer;Pan-Pacific Business Association, vol. 2(3), pages 233-248, September.

    More about this item

    Keywords

    General Equilibrium; Local Public Goods; Location; Spatial Competition;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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