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| Domenico Scalera and Alberto Zazzaro |
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| ''Cost reducing investments and spatial competition'' |
| ( 2005, Vol. 12 No.20 ) |
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| 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 |
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| Keywords: Cost reducing investments |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
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| Manuscript Received : Dec 23 2005 | | Manuscript Accepted : Dec 23 2005 |
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