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Matematicheskaya Teoriya Igr i Ee Prilozheniya, 2013, Volume 5, Issue 2, Pages 64–81
(Mi mgta109)
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This article is cited in 1 scientific paper (total in 1 paper)
Linear city model with exogenous Stackelberg competition
Alexander M. Torbenko Kemerovo State University
Abstract:
The paper considers the linear city model of spatial competition with the exogenous Stackelberg competition. With low transport costs, firms' equilibrium locations are in the center of the market. The leader profit is twice as big as the follower's profit, the price is minimal and the quantity is maximal at the center of the market. With high transport costs, firms are differentiated and the market splits into two submarkets. Both the leader and the follower sell the largest share of their goods near their location. The price is minimal at the leader's location. Then transport costs are rising, while the price is increasing and the quantity of goods is decreasing.
Keywords:
spatial competition, Stackelberg oligopoly, Hotelling linear city model.
Citation:
Alexander M. Torbenko, “Linear city model with exogenous Stackelberg competition”, Mat. Teor. Igr Pril., 5:2 (2013), 64–81
Linking options:
https://www.mathnet.ru/eng/mgta109 https://www.mathnet.ru/eng/mgta/v5/i2/p64
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Statistics & downloads: |
Abstract page: | 549 | Full-text PDF : | 240 | References: | 35 | First page: | 1 |
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