Nonprofit Firms in a Linear City with Nonnegative Profits

Christopher Hoag () and Kamal Lamsal

No 1403, Working Papers from Trinity College, Department of Economics

Abstract: In a linear city model of firm location, firms have altruistic objective functions that consist of a linear combination of maximizing profits and producing output, although firms are constrained to earn nonnegative profits. If firms place sufficient weight on maximizing profits, then firms locate at the ends of the linear city, just as in the firm location game under profit maximization. If firms place sufficient weight on producing output, then firms will locate at the median of the linear city, just as in the candidate voting game.

Keywords: Nonprofit; Linear City (search for similar items in EconPapers)
JEL-codes: L13 L31 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2014-04
New Economics Papers: this item is included in nep-bec, nep-ger and nep-ure
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http://www3.trincoll.edu/repec/WorkingPapers2014/WP14-03.pdf First version, 2014 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tri:wpaper:1403

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