This paper introduces a non-linear hyperbolic demand function in a spatial shipping model. We show that, in contrast with the linear demand case, dispersion of firms emerges in equilibrium both when the firms compete through quantities and when they compete through prices. Further, the impact of the marginal production costs on the degree of firms' dispersion in equilibrium is positive when firms compete with prices, and it is inverse U-shape when firms compete with quantities.

Colombo, S., Location choices with a non-linear demand function, <<PAPERS IN REGIONAL SCIENCE>>, 2016; 95 (march): S215-S226. [doi:10.1111/pirs.12122] [http://hdl.handle.net/10807/79333]

Location choices with a non-linear demand function

Colombo, Stefano
Primo
2016

Abstract

This paper introduces a non-linear hyperbolic demand function in a spatial shipping model. We show that, in contrast with the linear demand case, dispersion of firms emerges in equilibrium both when the firms compete through quantities and when they compete through prices. Further, the impact of the marginal production costs on the degree of firms' dispersion in equilibrium is positive when firms compete with prices, and it is inverse U-shape when firms compete with quantities.
Inglese
Colombo, S., Location choices with a non-linear demand function, <>, 2016; 95 (march): S215-S226. [doi:10.1111/pirs.12122] [http://hdl.handle.net/10807/79333]
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10807/79333
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