Conjectural Variations and Location Theory

Melvin L Greenhut and George Norman ()

Journal of Economic Surveys, 1992, vol. 6, issue 4, 299-320

Abstract: Imperfectly competitive markets, such as those involving spatial separation of producers and consumers are characterized by interactions between competing firms. Actions call forth reactions and the possible reactions form an important part of the information set that should be used to determine the initial actions. One method for dealing with this is the "conjectural variation" approach. Despite some shortcomings this methodology sheds considerable light on decision-making in the space economy. Equally importantly, it sheds light on more general microeconomies modeled as spatial analogs. This paper shows that conjectural variations and the nature of competition between rival firms do indeed "matter" in location choice and more generally in product design. In particular, we shall be concerned with showing how the conjectured responses of rival firms affect their desire to agglomerate. Copyright 1992 by Blackwell Publishers Ltd

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jecsur:v:6:y:1992:i:4:p:299-320

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0950-0804

Access Statistics for this article

More articles in Journal of Economic Surveys from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().