Cournot Competition Yields Spatial Agglomeration.
Most theoretical models of spatial competition show a strong tendency toward spatial dispersion of firms, yet common observations suggest that firms tend to agglomerate. In this paper, the authors show that competition between Cournot-type oligopolists that discriminate over space leads to spatial agglomeration. One implication is that firms do not (necessarily) earn supernormal profits at the free-entry equilibrium. Copyright 1991 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Year of publication: |
1991
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Authors: | Anderson, Simon P ; Neven, Damien J |
Published in: |
International Economic Review. - Department of Economics. - Vol. 32.1991, 4, p. 793-808
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Publisher: |
Department of Economics |
Saved in:
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