All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Yves Zenou and Sebastien Steinmetz
''On the Existence of Spatial Monopolies Under Free Entry''
( 2001, Vol. 4 No.8 )
This paper studies the question of entry in the circular city model when the pre-entry market structure involves local monopolies. In contrast with Salop (1979), we show that the unit profit rate of incumbent monopolists is strictly positive and bounded above. The upper bound decreases with the size of gaps and with the number of incumbents.
Keywords: entry
JEL: D4 - Market Structure and Pricing: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
Manuscript Received : Aug 01 2001 Manuscript Accepted : Aug 01 2001

  This abstract has been downloaded 1976 times                The Full PDF of this paper has been downloaded 154646 times