A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Demand creation and location: a variable consumer-distribution approach in spatial competition
Abstract This paper deals with a variable spatial distribution of consumers according to the location decisions of firms in spatial competition. Specifically, we present a location-then-quantity game in which some of the consumers are attracted to the firms’ locations. We show that all firms agglomerate in a circular city when the transport cost is low. This is in sharp contrast to the results shown in previous studies with fixed distributions of consumers, where such a full agglomeration never occurs in equilibrium. Welfare analysis shows excess dispersion compared with the second-best scenario.
Demand creation and location: a variable consumer-distribution approach in spatial competition
Abstract This paper deals with a variable spatial distribution of consumers according to the location decisions of firms in spatial competition. Specifically, we present a location-then-quantity game in which some of the consumers are attracted to the firms’ locations. We show that all firms agglomerate in a circular city when the transport cost is low. This is in sharp contrast to the results shown in previous studies with fixed distributions of consumers, where such a full agglomeration never occurs in equilibrium. Welfare analysis shows excess dispersion compared with the second-best scenario.
Demand creation and location: a variable consumer-distribution approach in spatial competition
Ago, Takanori (author)
2013
Article (Journal)
English
Demand creation and location: a variable consumer-distribution approach in spatial competition
| Online Contents | 2013
Welfare properties of spatial competition with location-dependent costs
| Online Contents | 2008
Welfare properties of spatial competition with location-dependent costs
| Online Contents | 2008