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Cournot, Bertrand or Chamberlin: Market Structures and the Home Market Effect

Author

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  • Kenji Fujiwara

    (School of Economics, Kwansei Gakuin University)

Abstract

Comparison among Cournot, Bertrand and (Chamberlin) monopolistic competition receives recent attention in industrial organization, but not in New Economic Geography (NEG). To fulfill this gap, we examine how the difference in market structures affects industry location in a footloose capital (FC) model of NEG. We find that the home market effect is strongest in Cournot competition, second strongest in Bertrand competition, and weakest in monopolistic competition.

Suggested Citation

  • Kenji Fujiwara, 2022. "Cournot, Bertrand or Chamberlin: Market Structures and the Home Market Effect," Discussion Paper Series 235, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:235
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    References listed on IDEAS

    as
    1. Jacques‐François Thisse, 2010. "Toward A Unified Theory Of Economic Geography And Urban Economics," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 281-296, February.
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    6. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524.
    7. Niroth Chhy, 2018. "A Simple Extension to the Dixit-Stiglitz Framework to Allow for Strategic Interaction," Economics Bulletin, AccessEcon, vol. 38(2), pages 1187-1197.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cournot competition; Bertrand competition; monopolistic competition; Home market effect;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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