We study competition in markets with significant transport costs and capacity constraints. We compare the cases of … price competition and coordination in a theoretical model and find that when firms compete, they more often serve more …

serve their home markets in equilibrium. Competition yields volatile market shares and an inefficient allocation of more … cross-supply each other as this can intensify competition by relaxing the receiver's capacity constraint. We use our … findings to discuss recent competition policy cases and provide hints for a more refined coordinated-effects analysis. …

This article studies competition in markets with transport costs and capacity constraints. We compare the outcomes of … price competition and coordination in a theoretical model and find that when firms compete, they more often serve more … Germany, we study a cartel breakdown to identify the effect of competition on transport distances. Our econometric analyses …