Chirco, Alessandra; Lambertini, Luca; Zagonari, Fabio - In: Economics of Governance 82 (2003) 4, pp. 555-568
We investigate the bearings of the level of demand on firms’ optimal locations and prices in a linear model of spatial differentiation with quadratic disutility of transportation. We show that demand affects both optimal prices and optimal locations of firms, in that firms increase product...