Mixed oligopoly and spatial agglomeration: a comment |
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Authors: | Oscar J Cá rdenas |
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Affiliation: | Escuela de Economia, Universidad de Guanajuato |
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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. |
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Keywords: | H42 L13 |
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