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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
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