Collusion, Agglomeration, and Heterogeneity of Firms
Toshihiro Matsumura and
Noriaki Matsushima
No 2009-05, Discussion Papers from Kobe University, Graduate School of Business Administration
Abstract:
Friedman and Thisse (RAND Journal of Economics, 1993) show that spatial agglomeration appears in a standard two-stage location price model if the symmetric firms can collude in prices. We introduce a cost difference between two firms. We show that agglomeration never appears in a collusive equilibrium even when the cost difference between the firms is sufficiently small.
Keywords: cost asymmetry; spatial agglomeration; collusion (search for similar items in EconPapers)
JEL-codes: L13 L41 R32 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2009-02
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Citations: View citations in EconPapers (1)
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https://www.b.kobe-u.ac.jp/papers_files/2009_05.pdf First version, 2009 (application/pdf)
Related works:
Journal Article: Collusion, agglomeration, and heterogeneity of firms (2011)
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