Author: Cárdenas, Oscar J

Source: Canadian Journal of Economics, Volume 40, Number 1, February/février 2007 , pp. 340-346(7)

Publisher: Wiley-Blackwell

Abstract:

Abstract. 

This paper extends Matsushima and Matsumura (2003) by incorporating a large production cost difference between public and private firms in a quantity setting spatial mixed oligopoly. The public and private firms first choose their locations in a linear market and then compete in quantities. It is shown that for a significant inefficiency of the public firm, all firms (including both public and private firms) agglomerate at the market centre.

Keywords: H42; L13

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1365-2966.2007.00394.x

Affiliations: 1: Escuela de Economia, Universidad de Guanajuato

Publication date: 2007-02-01

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