Cournot Competition and Spatial Agglomeration in a Linear Location Model---A Generalization

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Title:	Cournot Competition and Spatial Agglomeration in a Linear Location Model---A Generalization
Authors:	Yang, Biing-Shiunn;Liang, Wen-Jung;Hwang, Hong;Mai, Chao-Cheng
Contributors:	淡江大學經濟學系
Keywords:	Cournot competition;Cost-saving effect;Competition effect;Spatial dispersion
Date:	2006-12
Issue Date:	2014-02-12 18:05:41 (UTC+8)
Abstract:	Anderson and Neven (1991) show that central agglomeration is a unique location equilibrium for n firms if firms play Cournot competition and discriminate over space in a linear city model. Matsushima and Shimizu (2005) reconfirm this result, under the condition, which the consumer density at the center of the line market is not small. This paper employs a framework a la Anderson and Neven (1991), but slightly modifying the market-serving condition and taking into consideration the stability conditions. It is shown that the location equilibrium for n firms can be of either spatial dispersion or central agglomeration, depending on the magnitude of transport rates. Furthermore, this paper also derives a general pattern of the location configuration for an odd and an even number of firms, respectively.
Relation:	2006都市計劃學會、區域科學學會、住宅學會學術論文研討會論文集，31頁
Appears in Collections:	[Graduate Institute & Department of Economics] Proceeding

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