It is established that with the reduction of trade barriers the number of competitors on the spatial markets involved increases. This increase has short run consequences for price competition. If the trade liberalisation is anticipated by the domestic producers they will respond by changing the...

The paper presents an analysis of spatial competition between two firms in a circular market. It is shown that the existence problem of a Bertrand-Nash- Equilibrium exists for the circular market in the same way as for the linear and bounded market. This is demonstrated by directly studying the...