EQUILIBRIUM EXISTENCE IN THE CIRCLE MODEL WITH LINEAR QUADRATIC TRANSPORT COST

The authors of this paper treat the problem of existence of a location-then-price equilibrium in the circle model with a linear quadratic type of transportation cost function that can be either convex or concave. The existence is shown of a unique perfect equilibrium for the concave case when the linear and quadratic terms are equal and of a unique perfect equilibrium for the convex case when the linear term is equal to zero. Aside from these 2 cases, there are feasible locations by the firms for which no equilibrium in the price subgame exists. Finally, the authors provide a full taxonomy of the price equilibrium regions in terms of weights of the linear and quadratic terms in the cost function.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/01660462
• Corporate Authors:

  Elsevier

  Radarweg 29
  Amsterdam,   Netherlands  1043 NX
• Authors:
  • de Frutos, M A
  • Hamoudi, H
  • Jarque, X
• Publication Date: 1999

Language

• English

Media Info

• Features: References;
• Pagination: p. 605-615
• Serial:
  • Regional Science and Urban Economics
  • Volume: 29
  • Issue Number: 5
  • Publisher: Elsevier
  • ISSN: 0166-0462
  • Serial URL: http://www.sciencedirect.com/science/journal/01660462

Subject/Index Terms

• TRT Terms: Economic models; Equilibrium (Economics); Linear equations; Pricing; Quadratic equations; Types of costs
• Uncontrolled Terms: Circle models; Cost functions; Transportation costs
• Subject Areas: Administration and Management; Economics; Highways; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00791326
• Record Type: Publication
• Files: TRIS
• Created Date: Apr 3 2000 12:00AM