Price and quantity competition yield the same location equilibria in a circular market*

Chia-Ming Yu

Papers in Regional Science, 2007, vol. 86, issue 4, 643-655

Abstract: Abstract. Gupta et al. (2004) shows that in a circular market under spatial Cournot discrimination, the location equilibria can be categorised into several patterns. This paper proves that, given the same number of firms producing differentiated products, one location pattern constitutes an equilibrium in price competition if and only if it constitutes an equilibrium in quantity competition. That is, the location equilibrium is irrelevant to whether the firms compete with each other on quantities or prices.

Date: 2007
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https://doi.org/10.1111/j.1435-5957.2007.00141.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:86:y:2007:i:4:p:643-655

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