Do Firms Compete When Demand is Low? A Model of Spatial Differentiation

Chirco, Alessandra ; Lambertini, Luca (1994) Do Firms Compete When Demand is Low? A Model of Spatial Differentiation. Bologna: Dipartimento di Scienze economiche DSE, p. 8. DOI 10.6092/unibo/amsacta/5116. In: Quaderni - Working Paper DSE (210). ISSN 2282-6483.
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Abstract

In a spatial competition model, changes in firms’ competitive behaviour may occur when the hypothesis that individual gross surplus is positive in equilibrium is relaxed. We prove that there exists a region of the relevant parameter where firms’ behaviour mimics collusion, while in another range they find it optimal to isolate from each other and behave monopolistically.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Chirco, Alessandra
Lambertini, Luca0000-0001-6353-4753
Keywords
market demand, competitiveness, spatial differentiation
Subjects
ISSN
2282-6483
DOI
Deposit date
10 May 2016 08:01
Last modified
11 May 2016 08:10
URI

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