The Implications of Space for Competition

Suzanne Scotchmer and Jacques Thisse

No 724, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: 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. We review arguments that lead to these conclusions and summarize recent work pointing to other incentive systems that might lead to efficient location decisions and pricing policies.

Keywords: General Equilibrium; Local Public Goods; Location; Spatial Competition (search for similar items in EconPapers)
JEL-codes: D40 H41 L13 R10 (search for similar items in EconPapers)
Date: 1992-10
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Citations: View citations in EconPapers (5)

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