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Models of spatial competition: A critical review *
Author(s) -
Biscaia Ricardo,
Mota Isabel
Publication year - 2013
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5957.2012.00441.x
Subject(s) - cournot competition , competition (biology) , economics , bertrand competition , production (economics) , microeconomics , field (mathematics) , industrial organization , econometrics , mathematics , oligopoly , ecology , biology , pure mathematics
This critical review focuses on the development of spatial competition models à la Hotelling in which the location choice of firms plays a major role. We start by quantifying the research in this field by using bibliometric tools. Thereafter, this study identifies the main research paths within spatial competition modelling. Specifically, the type of strategy (Bertrand vs. Cournot competition), the assumptions that are made in respect to the market (linear vs. circular), production costs, transportation costs, the number of firms and the type of information (complete vs. incomplete) and their effects on the location equilibria are also discussed.