The strategic choice of location and transport mode in a successive monopoly model

Article Abstract:

Spatial successive monopolies wherein the downstream firm can choose its location mode of transportation are analyzed. It is demonstrated that despite fixed-proportions technology and inelastic demand there is still a strong incentive for vertical integration. This is because strategic behavior by the downstream firm causes inefficient preferences for location and transport mode. In examining the strategic choice of downstream location, the analysis focuses on the linear market in which the market center is the a priori transport-cost-minimizing location for a monopoly.

Monopolies, Vertical integration

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Location equilibrium for Cournot oligopoly in spatially separated markets

Article Abstract:

The Cournot oligopoly model analyzes the location equilibrium and price competition among firms which are competing in a network of connected spatially separated markets. The study showed that subgame perfect NASH equilibrium (SPNE) is attained when all demand functions are linear and when firms are allowed to set up multiple facilities. The study also showed that firms situate their facilities only at vertices when the delivered costs at every market is insignificant.

Market Research Techniques NEC, Plant Siting Analysis, Analysis, Market research, Oligopolies, Investment management

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Spatial Cournot competition and agglomeration in a model of location choice

Article Abstract:

A study on Cournot competition in spatial models and agglomeration in a model of location choice is presented. The study extends previous studies on Cournot competition to include a vast class of density functions by establishing the robustness of the agglomeration equilibrium.

Marketing Management, Industrial concentration

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