Spatial Cournot competition in a linear–circular market

Wen-Chung Guo and Fu-Chuan Lai

The Annals of Regional Science, 2015, vol. 54, issue 3, 819-834

Abstract: This paper explores a linear and circular model with spatial Cournot competition. It is shown that agglomeration of firms at the center of the main street is the equilibrium when the demand density on the main street (linear market) is high, and there exists a unique separated location equilibrium when the density is moderate. Moreover, the socially desirable interior locations are more dispersed than the equilibrium ones. Finally, extensions on tax policies, nonlinear demand, non-uniform distribution, and others are also discussed. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: D43; L13 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/s00168-015-0687-8

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