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PRICE AND LOCATION CONJECTURES IN MEDIUM‐ AND LONG‐RUN SPATIAL COMPETITION MODELS *
Author(s) -
Mulligan Gordon F.,
Fik Timothy J.
Publication year - 1994
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.1467-9787.1994.tb00862.x
Subject(s) - comparative statics , economics , interdependence , competition (biology) , bounded function , mathematical economics , econometrics , microeconomics , short run , mathematics , ecology , mathematical analysis , political science , law , biology
. This paper examines medium‐run and long‐run equilibria in unbounded (circular) and bounded (linear) one‐dimensional multifirm markets. A price‐location adjustment model is outlined that dows simulation of the spatial equilibrium when these firms anticipate reactions from their nearest spatial rivals. Thus, the market equilibrium is derived from the interdependent but atomistic decisions of the competing firms and is not imposed by some outside observer or agency. Ail conjectures are exogenous; the three well‐known price conjectures (Greenhut‐Ohta, Hotelling‐Smithies, and Losch) are highlighted; and the relevant comparative statics are provided.