Equilibrium Nonexistence in Spatial Competition with Quadratic Transportation Costs

Under quadratic transportation costs, the existence of the sequential first-locate-thenprice equilibrium in spatial competition is well known in the literature. In this paper, we find that the equilibrium may fail to exist under certain restrictions with respect to the location of firms and consumers in the market. This result is valid for both the linear and the circular models

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Year of publication:	2007-01
Authors:	Arguedas, Carmen ; Hamoudi, Hamid ; Saez, Manuel
Institutions:	Departamento de Análisis Económico: Teoría Económica e Historia Económica, Facultad de Ciencias Económicas y Empresariales
Subject:	Product differentiation \| circular model \| linear model \| quadratic transportation costs \| sequential equilibrium

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Series:	Working Papers in Economic Theory. - ISSN 1885-6888.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 2007/01 20 pages
Classification:	C72 - Noncooperative Games ; D43 - Oligopoly and Other Forms of Market Imperfection
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005405108