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SPATIAL COMPETITION WITH LOCATION‐DEPENDENT COSTS *
Author(s) -
Karlson Stephen H.
Publication year - 1985
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/j.1467-9787.1985.tb00069.x
Subject(s) - sign (mathematics) , competition (biology) , econometrics , economics , microeconomics , industrial organization , mathematics , ecology , mathematical analysis , biology
This paper investigates the behavior of spatially‐competitive firms whose costs depend on their locations. Necessary and sufficient conditions for optimum locations are derived. Comparative‐statistics analysis of the equilibrium shows that the responses of firms to changes in input and output transport rates depend on the properties of consumer demand curves or are ambiguous in sign.