Space and Competition: A Puzzle

Suzanne Scotchmer and Jacques Thisse

The Annals of Regional Science, 1992, vol. 26, issue 3, 269-86

Abstract: The authors review the argument that incorporating space in economic models has two important consequences: first, the hypothesis of perfect competition becomes untenable, and second, the distinction between private and public goods becomes blurred. They summarize recent work pointing to alternative incentive systems that might lead to efficient location decisions and pricing policies.

Date: 1992
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