Spatial Cournot Competition in a Circular City with More than Two Dispatches

Chia-Hung Sun, Jyh-Fa Tsai and Fu-Chuan Lai
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Chia-Hung Sun: Soochow University
Jyh-Fa Tsai: National Taipei University
Fu-Chuan Lai: Academia Sinica and National Chengchi University

The Japanese Economic Review, 2017, vol. 68, issue 4, No 1, 413-442

Abstract: Abstract This paper investigates spatial Cournot competition in a circular city, where the maximal service range of a vehicle is less than half of the perimeter, and a firm needs to initiate more than two dispatches to serve the whole market. We examine a multi-stage game of location and transportation mode choices, and the subsequent quantity competition between duopoly firms. The findings reveal that non-maximum dispersion is the unique location equilibrium when duopoly firms deliver products in different transportation modes or when the transportation mode decisions are made endogenously and the fixed cost of a transportation instrument is relatively high.

Keywords: D43; L13; R30; R40 (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1111/jere.12120

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