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This article focuses on the location decision of firms when competing in a spatial Cournot duopoly. Our original contribution is that firms are dependent on a natural resource input, which is assumed to be located in one of the extremes of the market, to be able to produce the output sought by...
Persistent link: https://www.econbiz.de/10011517117
In spatial competition firms are likely to be uncertain about demand when launching products either because of shifting demographics or of asymmetric information about preferences. This paper considers two types of prices: those set on prior information and flexible prices which adjust across...
Persistent link: https://www.econbiz.de/10013128129
In spatial competition iuml;B01rms are likely to be uncertain about consumer locations when launching products either because of shifting demographics or of asymmetric information about preferences. Realistically distributions of consumer locations should be allowed to vary over states and need...
Persistent link: https://www.econbiz.de/10012724699
The paper studies indirect network effects in a market composed by two incompatible intermediaries that choose price (short-term issue) in addition to location (long-term issue). The paper first shows that (i) when the network externality is sufficiently weak, only maximum differentiation...
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models, by illustrating their characteristics and their main results. In particular, we discuss the Hotelling linear market …
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monopoly power. The aim of the present paper is to shed light on this question using a standard Hotelling setup. The high level …
Persistent link: https://www.econbiz.de/10010187650