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Differentiated Bertrand markets: restoring the minimum differentiation principle

Stefano Colombo ()

Letters in Spatial and Resource Sciences, 2013, vol. 6, issue 2, 103-108

Abstract: I introduce non-perfect substitutability between products into the spatial Bertrand model. I show that if goods are complements, the firms always agglomerate. If goods are substitutes, the firms agglomerate if the transportation costs are not too high. Copyright Springer-Verlag Berlin Heidelberg 2013

Keywords: Product differentiation; Spatial competition; Agglomeration; D43; L13; L40 (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/s12076-012-0090-3

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Handle: RePEc:spr:lsprsc:v:6:y:2013:i:2:p:103-108