Cost reducing investments and spatial competition

Domenico Scalera and Alberto Zazzaro ()

Economics Bulletin, 2005, vol. 12, issue 20, 1-8

Abstract: In this paper we analyze the relationship between competition and cost reducing investments in the context of a location model. In particular, we derive the symmetric subgame-perfect equilibrium of a three-stage circular city model with closed-loop strategies, and study the effects of changes in competition fundamentals under both a given number of firms and free entry

Keywords: Cost; reducing; investments (search for similar items in EconPapers)
JEL-codes: L1 (search for similar items in EconPapers)
Date: 2005-12-23
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Citations: View citations in EconPapers (2)

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