Models of Spatial Competition: a Critical Review

Ricardo Biscaia and Isabel Mota

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: This critical review focuses on the development of spatial competition models in which the location choice by firms plays a major role. Therefore, after a brief review of the roots of spatial competition modeling, this paper intends to offer a critical analysis over its recent developments. The starting point is the recognition of the increased importance of this topic through the quantification of the research in this field by using some bibliometric tools. After that, this study proceeds by identifying the main research paths within spatial competition modeling. Specifically, the type of strategy (Bertrand vs. Cournot competition) and its implications over location equilibria are discussed. Additionally, it is presented a comparison of the effects on the location equilibria of the most typical assumptions in literature, that respect to the market (linear vs. circular), production costs, transportation costs, as well as the number of firms. Finally, the type of information (complete vs. incomplete) and its effects over the equilibria are also discussed.

Keywords: spatial competition; review; Hotelling; game theory (search for similar items in EconPapers)
JEL-codes: D82 L13 R10 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2011-04
New Economics Papers: this item is included in nep-com, nep-cse, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Models of spatial competition: A critical review (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:411

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