We study cartel stability in a differentiated price-setting duopoly with returns to scale. We show that a cartel may be equally stable in the presence of lower differentiation, provided that the decreasing returns parameter is high. In addition we demonstrate that for a given factor of discount,...

We study cartel stability in a differentiated price-setting duopoly with returns to scale. We show that a cartel may be equally stable in the presence of lower differentiation, provided that the decreasing returns parameter is high. In addition we demonstrate that for a given factor of discount,...

We consider a number of individual, discrete consumers, deciding their location on Hotelling's line in a non-cooperative way. Agglomeration emerges as a non-cooperative equilibrium, implying high transportation costs. No restriction is required concerning the functional forrn of transport costs...

The decision of one of two competitors on a line to open a new plant is analysed. Three levels of interdependence -or independence- between the already existing firm and the new plant are studied: complete independence, joint decision making with respect to the location of the new plant only and...

We study cartel stability in a differentiated price-setting duopoly with returns to scale. We show that a cartel may be equally stable in the presence of lower differentiation, provided that the decreasing returns parameter is high. In addition we demonstrate that for a given factor of discount,...