|
| |
| 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 |
|
