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dc.contributor.authorGu, Yiquanen_US
dc.contributor.authorWenzel, Tobiasen_US
dc.date.accessioned2008-01-16en_US
dc.date.accessioned2009-08-06T09:01:59Z-
dc.date.available2009-08-06T09:01:59Z-
dc.date.issued2007en_US
dc.identifier.isbn978-3-86788-030-5en_US
dc.identifier.urihttp://hdl.handle.net/10419/26798-
dc.description.abstractThis paper revisits the excess entry theorem in spatial models à la Vickrey (1964) and Salop (1979) while relaxing the assumption of inelastic demand. Using a demand function with a constant demand elasticity, we show that the number of firms that enter a market decreases with the degree of demand elasticity.We find that the excess entry theorem does only hold when demand is sufficiently inelastic. Otherwise, there is insufficient entry. In the limiting case of unit elastic demand, the market is monopolized. We point out when and how a public policy can be desirable and broaden our results with a more general transportation cost function.en_US
dc.language.isoengen_US
dc.publisherRWI Essenen_US
dc.relation.ispartofseriesRuhr economic papers 33en_US
dc.subject.jelL11en_US
dc.subject.jelL13en_US
dc.subject.ddc330en_US
dc.subject.keywordElastic demanden_US
dc.subject.keywordspatial modelsen_US
dc.subject.keywordexcess entry theoremen_US
dc.subject.stwRaumwirtschaftstheorieen_US
dc.subject.stwMarkteintritten_US
dc.subject.stwGesamtwirtschaftliche Nachfrageen_US
dc.subject.stwElastizitäten_US
dc.subject.stwTransportkostenen_US
dc.subject.stwTheorieen_US
dc.titleA note on the excess entry theorem in spatial models with elastic demanden_US
dc.typeWorking Paperen_US
dc.identifier.ppn556627482en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Publikationen von Forscherinnen und Forschern des RWI
Ruhr Economic Papers, RWI

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