Arbeitspapier

Cournot Competition, Market Size Effects and Agglomeration

We analyse a two-stage location-quantity game with many firms and two regions. We show that the firms will never agglomerate in the same location if transportation is costly between the regions. We also analyse the effects of differences in market size and economic integration on the allocation of industrial activity. For high levels of trade costs firms locate in different regions. Lowering the trade costs beyond a critical level triggers an agglomeration of industry in the larger region. This process of agglomeration is gradual in nature and trade costs have to be successively lowered for a full-scale agglomeration to take place.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2005:23

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Oligopoly and Other Imperfect Markets
Real Estate Markets, Spatial Production Analysis, and Firm Location: General
Thema
agglomeration
cross-hauling
market size effects
spatial Cournot competition

Ereignis
Geistige Schöpfung
(wer)
Gallo, Fredrik
Ereignis
Veröffentlichung
(wer)
Lund University, School of Economics and Management, Department of Economics
(wo)
Lund
(wann)
2005

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Gallo, Fredrik
  • Lund University, School of Economics and Management, Department of Economics

Entstanden

  • 2005

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