Spatial dispersion in Cournot Competition
Knowledge Area
Métodos Cuantitativos para la Economía y la EmpresaPublication date
2000-06Publisher
Asociación Española de Economía Aplicada ( ASEPELT)Bibliographic Citation
RUIZ MARÍN, Manuel, GARCÍA CÓRDOBA, José A., LÓPEZ HERNÁNDEZ, Fernando A. Spatial dispersion in Cournot Competition. En: ASEPELT-España. Reunión Anual (14ª: 2000: Oviedo). Anales de economía aplicada: [Actas de la] XIV Reunión [Recurso electrónico]: Oviedo, 22 y 23 de junio de 2000. [Oviedo] : ASEPELT España, D.L. 2000. 1-7 p.Keywords
EquilibrioCournot Competencia
Competencia espacial
Equilibrium
Cournot Competition
Spatial competition
Abstract
Several papers suggest that Cournot competition in a spatial model,
with a uniform distribution of consumers, agglomerate at the center of
the market. In this paper we prove that this is not true under an hyperbolic
demand function and concave transport cost. Moreover we prove
that under the above assumptions in the center of the market the firms
obtain minimum profit reaching the maximum when both firms locate at
opposite places of the market.
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