[PDF] Spatial Competition With Elastic Demand eBook

Author : Yiquan Gu
Publisher :
Page : 18 pages
File Size : 32,89 MB
Release : 2008
Category :
ISBN :

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This paper revisits the excess entry theorem in spatial models agrave; la Vickrey (1964) and Salop (1979) while relaxing the assumption of inelastic demand. Using a demand function with a constant demand elasticity, we show that the number of firms that enter a market decreases with the degree of demand elasticity.We find that the excess entry theorem does only hold when demand is sufficiently inelastic. Otherwise, there is insufficient entry. In the limiting case of unit elastic demand, the market is monopolized. We point out when and how a public policy can be desirable and broaden our results with a more general transportation cost function.

Author : Tönu Puu
Publisher : Springer
Page : 362 pages
File Size : 39,91 MB
Release : 2010-12-09
Category : Business & Economics
ISBN : 9783642056659

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This second edition covers all main topics of spatial economics, plant location, and the theory of nested market areas. The book starts from the classical models of the space economy which are stated in terms of precise mathematical models. Especially, the book offers a lavish supply of computer graphics to make the results easily understandable. Extracts from reviews to the first edition: "This book is an excellent introduction to the theory of continuous location of economic activities in two-dimensional space based on differential equations and to their solution by vector calculus methods. As Puu states "good science is to be easily understood. This book is, indeed, a lucid and easily readable introduction to the fundamental concepts of spatial economic theory and the differential calculus machinery of the continuous transportation model." K. C. Mosler in "Location Science" "This book represents an honest attempt at introducing spatial economic theory. The author does not appear to be interested in showing off his obvious mathematical skills. His intention is to summarize the accumulated knowledge in the field and present the main results in a simple manner. He does an admirable job. Of help are the high-quality graphics, the omission of semicooked ideas and messy results, and the author's extensive experience on the subject over a long period of time." P. S. Kanaroglou in "Environment and Planning"

Author : Phillip J. Lederer
Publisher :
Page : pages
File Size : 27,62 MB
Release : 1998
Category :
ISBN :

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This paper studies price and production competition between spatially distributed firms. Firms compete by choosing delivered prices, a pricing regime which is often observed for goods with high transportation costs. The model is a very general one: customers have price elastic demand and firms have increasing marginal production and transportation costs. To study this competitive situation, a non-cooperative game is proposed. Existence and general properties of the Nash price and production equilibrium are shown and sufficient conditions that guarantee the existence of a unique price-production-transportation equilibrium are presented. It is shown that the only pricing patterns that can result from equilibrium are basing point, monopoly or mill pricing. A convergent algorithm is shown and demonstrated with an example.