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