Mixed spatial duopoly, consumers’ distribution and efficiency

Corrado Benassi, Alessandra Chirco () and Caterina Colombo

Economics Letters, 2017, vol. 156, issue C, 74-77

Abstract: We solve a mixed spatial duopoly with a generic log-concave consumers’ distribution. We show that the sub-game perfect equilibrium in prices and locations exists and is generally inefficient, so that the efficiency in the standard uniform distribution case stands out as an exception. Notable examples show that the inefficiency may increase as the distribution becomes more concentrated.

Keywords: Mixed duopoly; Spatial competition; Consumers’ distribution; Efficiency of equilibrium (search for similar items in EconPapers)
JEL-codes: H44 L13 L32 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:156:y:2017:i:c:p:74-77

DOI: 10.1016/j.econlet.2017.04.017

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