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Alessandra Chirco, Marcella Scrimitore and Corrado Benassi
''Spatial Discrimination with Quantity Competition and High Transportation Costs: a Note''
( 2007, Vol. 12 No.1 )
In this paper we extend the analysis of the standard model of spatial discrimination with quantity competition along the linear city to the case in which the unit transportation cost is greater than one. We show that in such a case the unique subgame perfect Nash equilibrium in locations is a dispersed symmetric equilibrium. Moreover, at this equilibrium firms' locations are not monotone in the transportation cost parameter.
Keywords: Market Coverage
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
R3 - Production Analysis and Firm Location: General
Manuscript Received : Nov 27 2006 Manuscript Accepted : Jan 15 2007

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