Artikel

The equivalence of convex and concave transport cost in a circular spatial model with and without zoning

This article depicts a location game in a circular market. The equivalence results between a convex and a concave transport cost are reexamined by assuming an arbitrary length. In contrast to previous research the solution found shows that the equivalence relationship depends on the space length. Furthermore, the analysis is extended to a circular model with unitary length and zoning. In this case equivalence does not hold. Moreover, non-existence of equilibrium is shown under strictly linear quadratic functions. Surprisingly, equilibrium exists for a concave quadratic function but not for a convex quadratic function.

Language
Englisch

Bibliographic citation
Journal: Estudios de Economía ; ISSN: 0718-5286 ; Volume: 42 ; Year: 2015 ; Issue: 1 ; Pages: 5-20 ; Santiago de Chile: Universidad de Chile, Departamento de Economía

Classification
Wirtschaft
Noncooperative Games
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
Production Analysis and Firm Location: Government Policy
Subject
convexity
concavity
spatial competition
circular model
transport costs
regulator

Event
Geistige Schöpfung
(who)
Hamoudi, Hamid
Rodríguez Iglesias, Isabel María
Martín-Bustamante, Marcos Sanz
Event
Veröffentlichung
(who)
Universidad de Chile, Departamento de Economía
(where)
Santiago de Chile
(when)
2015

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Hamoudi, Hamid
  • Rodríguez Iglesias, Isabel María
  • Martín-Bustamante, Marcos Sanz
  • Universidad de Chile, Departamento de Economía

Time of origin

  • 2015

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