Sarangi, Sudipta; Kyureghian, Hrachya - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2004
We consider a linear city model where both firms and consumers have to incur transport costs. Following a standard Hotelling (1929) type framework we analyze a duopoly where firms facing a continuum of consumers choose locations and prices, with the transportation rate being linear in distance....