Duopolistic Competition On a Plane

Davit Maskharashvilia ()
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Davit Maskharashvilia: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic

No 2019/1, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: The paper models duopolistic competition in so called monotowns: towns with one big factory where most of the citizens are employed. Workers after job go to one of the competitor shops, buy the product and bring it home. Nash equilibrium is found for linear and two-dimensional cases. The principle of maximum differentiation is refuted.

Keywords: spatial competition; two-dimensional city (search for similar items in EconPapers)
JEL-codes: C72 D43 L13 R32 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2019-02, Revised 2019-02
New Economics Papers: this item is included in nep-com, nep-gth and nep-ore
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