Location choice and optimal zoning under Cournot competition

This paper introduces a symmetric zoning regulation into a spatial Cournot competition model and analyzes how this intervention affects equilibrium locations and social welfare. It is shown that firms will locate separately at the two endpoints of a wide enough zoning enacted in the middle area of a linear market. This location pattern implies that social welfare can be improved by implementing a proper zoning regulation.

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Year of publication:	2008
Authors:	Chen, Chin-Sheng ; Lai, Fu-Chuan
Published in:	Regional Science and Urban Economics. - Elsevier, ISSN 0166-0462. - Vol. 38.2008, 2, p. 119-126
Publisher:	Elsevier

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005363203