- THE CIRCULAR ROAD REVISITED: UNIQUENESS AND SUPERMODULARITY

Martin Peitz

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: The model of the circular road has proved to be a popular model of oligopolistic interaction, yet its theoretical properties are not fully explored. In this paper I extend the uniqueness result of price equilibrium in the circular road with equidistant locations from quadratic transportation costs to a class of utility functions of the consumers. I show that the associated game is supermodular and dominance solvable. The paper also discusses possible extensions and limitations of the model.

Keywords: Circular Road; Localized competition; supermodular games (search for similar items in EconPapers)
Pages: 18 pages
Date: 1999-04
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Citations: View citations in EconPapers (1)

Published by Ivie

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http://www.ivie.es/downloads/docs/wpasad/wpasad-1999-06.pdf Fisrt version / Primera version, 1999 (application/pdf)

Related works:
Journal Article: The circular road revisited: Uniqueness and supermodularity (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:1999-06

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