Market structure and industry location in a footloose capital model

Kenji Fujiwara

Research in Economics, 2023, vol. 77, issue 2, 275-283

Abstract: Comparison among Cournot, Bertrand and monopolistic competition receives recent attention in industrial organization, but not in New Economic Geography. To fulfill this gap, we examine how the difference in market structures affects industry location in a footloose capital model. We find that the home market effect is strongest in Cournot competition, second strongest in Bertrand competition, and weakest in monopolistic competition. And, we link the insights in industrial organization with our model of geography.

Keywords: Cournot competition; Bertrand competition; Monopolistic competition; Home market effect (search for similar items in EconPapers)
JEL-codes: D43 F12 F21 L13 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:77:y:2023:i:2:p:275-283

DOI: 10.1016/j.rie.2022.11.001

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