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
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Englisch
- Bibliographic citation
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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
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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
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convexity
concavity
spatial competition
circular model
transport costs
regulator
- Event
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Geistige Schöpfung
- (who)
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Hamoudi, Hamid
Rodríguez Iglesias, Isabel María
Martín-Bustamante, Marcos Sanz
- Event
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Veröffentlichung
- (who)
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Universidad de Chile, Departamento de Economía
- (where)
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Santiago de Chile
- (when)
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2015
- Handle
- Last update
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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