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Cournot Retail Chains
Author(s) -
Claycombe Richard J.
Publication year - 1998
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/0022-4146.00104
Subject(s) - cournot competition , competition (biology) , industrial organization , variety (cybernetics) , microeconomics , bertrand paradox (economics) , economics , business , bertrand competition , oligopoly , computer science , ecology , artificial intelligence , biology
In this paper a model of spatial Cournot competition among retail firms is devised and used to assess the effect of a variety of structural factors on retail prices and profits. The model illustrates the spatial chain of interaction that firms must anticipate to reach equilibrium when organized in chains or as independents. It shows the sensitivity of price to the location of stores, the number of stores per location, and transportation cost.