Do Firms Compete When Demand is Low? A Model of Spatial Differentiation

Chirco, Alessandra; Lambertini, Luca

doi:doi:10.6092/unibo/amsacta/5116

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/159053

Title:

Do Firms Compete When Demand is Low? A Model of Spatial Differentiation

Authors:

Chirco, Alessandra
Lambertini, Luca

Year of Publication:

1994

Series/Report no.:

Quaderni - Working Paper DSE No. 210

Publisher:

Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE), Bologna

Abstract:

In a spatial competition model, changes in firms' competitive behaviour may occur when the hypothesis that individual gross surplus is positive in equilibrium is relaxed. We prove that there exists a region of the relevant parameter where firms' behaviour mimics collusion, while in another range they find it optimal to isolate from each other and behave monopolistically.

Persistent Identifier of the first edition:

doi:10.6092/unibo/amsacta/5116

Creative Commons License: