Spatial Cournot competition in a circular city with directional delivery constraints

Abstract

D43, L13,

Spatial Cournot Competition in a Linear City with Directional Delivery Constraints

“…The issue of a directional constraint in a Cournot framework corresponds to that when a firm transports products in only one direction in a spatial market. The present study extends the concept of a directional delivery constraint in Sun's (2010) spatial Cournot model with a circular city to a spatial Cournot model with a linear city.…”

Product differentiation and spatial agglomeration in a unidirectional Cournot model

“…However, these authors show as well that dispersed equilibria are also consistent with Cournot competition in a bidirectional setting. The unidirectional Hotelling model has been introduced by Cancian et al (1995) and further developed by Lai (2001), Kharbach (2009), Colombo (2009, 2010 and Sun (2010). In this model setup firms face a directional delivery constraint, which means that a firm can only deliver its product in one direction.…”

Spatial Cournot competition in a circular city with more than two dispatches

“…The work of Sun (2010) is the first to add directional delivery constraints in a circularcity Cournot model, meaning that a firm transports products in only one direction in a spatial market, in order to analyse firms' location competition. 1 In contrast, Sun (2014) adds directional delivery constraints in a linear-city Cournot model to show that a richer set of spatial configurations and transportation mode selections arise in equilibrium. Matsumura and Shimizu (2015) investigate the flexible manufacturing system by using the spatial price discrimination framework of Pal (1998).…”

“…Matsumura and Matsushima () examine the location issues associated with a nonlinear transportation cost function and show that the extension of a linear‐quadratic transportation cost function helps to reduce the equilibrium set in an oligopoly model. The work of Sun () is the first to add directional delivery constraints in a circular‐city Cournot model, meaning that a firm transports products in only one direction in a spatial market, in order to analyse firms’ location competition . In contrast, Sun () adds directional delivery constraints in a linear‐city Cournot model to show that a richer set of spatial configurations and transportation mode selections arise in equilibrium.…”

“… Sun () points out the methodical equivalence of maximizing a firm's own profit and maximizing the variance of cost differentiation between firms in a Cournot shipping model with a circular city. …”