Bandulet, Martin; Morasch, Karl - In: Topics in Economic Analysis & Policy 3 (2003) 1, pp. 1099-1099
Do firms have proper incentives to invest in transport cost reduction? We discuss this question in a duopoly with a local firm and a distant competitor that may invest in a reduction of marginal transportation costs. In a two-stage game with investment in the first and duopoly competition in the...