Publication: Equilibrium existence in the circle model with linear quadratic transport cost
Loading...
Identifiers
Publication date
1999-09
Defense date
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
Impact
Export
Abstract
We treat the problem of existence of a location-then-price equilibrium in the circle model with a linear quadratic type of transportation cost function which can be either convex or concave. We show the existence of a unique perfect equilibrium for the concave case when the linear and quadratic terms are equal and of a unique perfect equilibrium for the convex case when the linear term is equal to zero. Aside from these two cases, there are feasible locations by the firms for which no equilibrium in the price subgame exists. Finally, we provide a full taxonomy of the price equilibrium regions in terms of weights of the linear and quadratic terms in the cost function.
Description
Keywords
Hotelling, Circle, Equilibria
Bibliographic citation
Regional Science and Urban Economics. 1999, vol. 29, nº 5, p. 605–615