Location choice and optimal zoning under Cournot competition

Chin-Sheng Chen and Fu-Chuan Lai

Regional Science and Urban Economics, 2008, vol. 38, issue 2, 119-126

Abstract: This paper introduces a symmetric zoning regulation into a spatial Cournot competition model and analyzes how this intervention affects equilibrium locations and social welfare. It is shown that firms will locate separately at the two endpoints of a wide enough zoning enacted in the middle area of a linear market. This location pattern implies that social welfare can be improved by implementing a proper zoning regulation.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:38:y:2008:i:2:p:119-126

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