A model of location choice by Cournot oligopolists is presented, under the assumption that R&D spillovers depend on the distance between firms. We show that a variety of patterns emerge. Agglomeration is optimal under certain assumptions. Geographical dispersion in a two-dimensional plane is...

This paper analyzes a class of two-stage Cournot games where rival firms, in the first stage, incur real resource costs in jointly manipulating their marginal costs of production, so as to influence the outcome of game they want to play in the second stage. Marginal costs may be manipulated by...

Favoritism in vertical relationship is a situation in which an upstream firm sets favorable exchange conditions to some agents at the expense of others. This paper explores the reason for, and direction of, favoritism in the vertical relationship between an upstream firm and a number of...