Cournot competition in spatial markets: a complementary result on complementarity

Andreea Cosnita-Langlais

Economics Bulletin, 2011, vol. 31, issue 3, 2454-2467

Abstract: We study location equilibria for a symmetrical two-store duopoly selling differentiated products on the circle market. In contrast to the existing literature, we assume that each store sells a different product. We consider both complementarity among all varieties on the market and intra-firm complementarity but substitutability between rival varieties, and obtain multiple equilibria in each case. We thus remind that the assumptions on intra-firm as well as on inter-firm competition may be relevant for determining the equilibrium pattern in a spatial model with location choice and various types of product differentiation.

Keywords: spatial Cournot model; multi-store competition; product complementarity (search for similar items in EconPapers)
JEL-codes: D4 R3 (search for similar items in EconPapers)
Date: 2011-08-29
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Related works:
Working Paper: Cournot competition in spatial markets: some complementary results on complementarity (2006)
Working Paper: Cournot competition in spatial markets: some complementary results on complementarity (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-11-00529

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