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Cournot competition in spatial markets: some complementary results on complementarity

Author

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  • Andreea Cosnita

    (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

We study in this paper location equilibria for a symmetrical two-store duopoly selling complementary varieties, both on the linear and the circular markets. In contrast to the existing literature, besides assuming that each affiliate produces a different complementary variety, we equally consider in turns complementarity among all varieties on the market and substitutability between rival varieties. On the segment market, the intuition of a single-plant entity behaviour is enough to obtain and justify the result of central agglomeration. On the circle, instead, we are able to check the multiple equilibria property, to the extent that besides the intuitiive spatial pattern, we identified each time a second one, involving diametrical dispersion, viable though only for low degrees of complementarity.

Suggested Citation

  • Andreea Cosnita, 2005. "Cournot competition in spatial markets: some complementary results on complementarity," Post-Print halshs-00196099, HAL.
    • Handle: RePEc:hal:journl:halshs-00196099
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00196099
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    References listed on IDEAS

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    More about this item

    Keywords

    complementary products; multi-store competition; spatial Cournot model; biens complémentaires; modèle de Cournot; firmes multi-filiales;
    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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