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The empirical relationship between market concentration and prices has been well established for a long time and for …. Then we apply the estimated model to simulate monopoly prices on local markets with two or more operators and compare them … to the prices actually observed in these markets. We find no significant difference in admission prices, which puts our …
Persistent link: https://www.econbiz.de/10009369196
The spatial distribution of production is a defining characteristic of agriculture, and the location choice in geographic space and the spatial pricing policies adopted by agricultural processing/packing firms are key determinants of the competitiveness and efficiency of agricultural product...
Persistent link: https://www.econbiz.de/10014000362
Agricultural economists have a long history of emphasizing and analyzing the spatial dimension of agricultural and food markets. Despite a rich body of literature and important contributions to agricultural and spatial economics, one aspect is frequently disregarded: the oligopsonistic nature of...
Persistent link: https://www.econbiz.de/10014496477
transport costs (different levels of development) affects firms’ decisions on location and prices. Considering the situation … non-neighbouring extremes, which leads to higher prices and profits. Therefore, the firm located in the more developed …
Persistent link: https://www.econbiz.de/10010991722
The purpose of this paper is to explain the decentralization process of an urban spatial structure in terms of the strategic interactions between firms. For that purpose, we expand the Hotelling model of a linear city to incorporate two aspects of the urban spatial structure, namely, the...
Persistent link: https://www.econbiz.de/10010931316
The purpose of this paper is to show that taste heterogeneity and imperfect information on the characteristics of available varieties among consumers can lead to the agglomeration of commercial activities. Here, the source of agglomeration is matching. By constructing a two-region model, we show...
Persistent link: https://www.econbiz.de/10010666188
We analyze the location of final goods producers under spatial competition with strategic input price determination by firm-specific input suppliers when the final goods producers undertake complete outsourcing or bi-sourcing. Under complete outsourcing, the final goods producers locate closer...
Persistent link: https://www.econbiz.de/10014443302
The purpose of this note is to show that an analogue of the Beckmann-Ingene proposition on price policies of a spatial monopolist applies to a properly formulated profit maximization problem for a spatial monopsonist. The proof of this fact uses the same linear transformation employed in the...
Persistent link: https://www.econbiz.de/10005612802
We visit the role of privatization in the location decision of firms in an industry where no firm can produce all varieties demanded. We demonstrate that the Nash equilibrium locations are socially optimal, in the presence of a publicly owned firm, notwithstanding the degree of privatization.
Persistent link: https://www.econbiz.de/10010743693
In linear-city models, if firms are allowed (not allowed) to locate outside the linear city, they engage in excessive (insufficient) R&D investments from the normative viewpoint. This implies that the feasible set of locations drastically affects their investments.
Persistent link: https://www.econbiz.de/10010572185