Asymmetrical Price Conjectural Variation in Spatial Competition Models

Datos Bibliográficos

ID7757261
AutoresGordon F Mulligan (0000-0003-0485-0144), Timothy J Fik
Año1989
Volumen65
Número1
Páginas19
Fecha de publicación1989-01-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaEconomic Geography (JOURNAL)
Identificadores de la revistaISSN: 0013-0095 • E-ISSN: 1944-8287
EditorialJSTOR (PUBLISHER)
DOI10.2307/143476
OpenAlexW2312276198
IdiomaEN
Citas recibidas6
Referencias citadas3

This paper examines the comparative statics of firms' equilibrium prices (generated by price reaction functions) in spatially competitive oligopolies. Implications for firms' pricing behaviors—generated by asymmetrical price conjectural variations—are discussed for one-dimensional markets. The analytical properties of equilibrium prices are first established for the case of inelastic consumer demand. Then the results of a price sensitivity analysis of market parameters (demand intensity, transportation rate, etc.) are presented for the more complicated case of elastic consumer demand. The paper demonstrates that the geographic extents of rivals' market shares are not only functions of firms' pricing behaviors but also the interaction of such behaviors with various market parameters

Biology · Competition (biology) · Econometrics · Economics · Physics · Variation (astronomy) · Consumer Market Behavior and Pricing · Ecology · Economics of Agriculture and Food Markets · Merger and Competition Analysis