Spatial Cournot Competition in a Linear City with Directional Delivery Constraints

Chia-Hung Sun

The Japanese Economic Review, 2014, vol. 65, issue 3, 344-374

Abstract: type="main">

This study investigates a sequential game of location and transportation mode choices, as well as the subsequent quantity choice. The results show that spatial Cournot competition with directional delivery constraints yields a richer set of spatial configurations, involving midpoint agglomeration, maximum differentiation and asymmetric dispersion, and a richer set of transportation mode selections, involving delivery in different directions, asymmetric delivery between duopoly firms, and delivery in two directions by each firm, depending on the fixed cost of a transportation instrument. This paper concludes with an investigation of welfare analysis on optimal locations and transportation modes.

Date: 2014
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