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Domenico Scalera and Alberto Zazzaro
 
''Cost reducing investments and spatial competition''
( 2005, Vol. 12 No.20 )
 
 
In this paper we analyze the relationship between competition and cost reducing investments in the context of a location model. In particular, we derive the symmetric subgame-perfect equilibrium of a three-stage circular city model with closed-loop strategies, and study the effects of changes in competition fundamentals under both a given number of firms and free entry
 
 
Keywords: Cost reducing investments
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
 
Manuscript Received : Dec 23 2005 Manuscript Accepted : Dec 23 2005

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