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dc.contributor.authorGu, Yiquanen
dc.contributor.authorWenzel, Tobiasen
dc.date.accessioned2012-02-06-
dc.date.accessioned2012-02-07T14:05:18Z-
dc.date.available2012-02-07T14:05:18Z-
dc.date.issued2012-
dc.identifier.isbn978-3-86304-042-0en
dc.identifier.urihttp://hdl.handle.net/10419/55139-
dc.description.abstractThis paper introduces price-dependent individual demand into the circular city model of product differentiation. We show that for any finite number of firms, a unique symmetric price equilibrium exists provided that demand functions are not too convex. As in the case of unit demand, the number of firms under free entry decreases in the fixed cost of entry while increases in the transportation cost of consumers. However, this number is no longer always in excess of the socially optimal level. Insufficient entry occurs when the fixed and transportation costs are high.en
dc.language.isoengen
dc.publisher|aHeinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE) |cDüsseldorfen
dc.relation.ispartofseries|aDICE Discussion Paper |x43en
dc.subject.jelL11en
dc.subject.jelL13en
dc.subject.jelR1en
dc.subject.ddc330en
dc.subject.keywordspatial modelsen
dc.subject.keywordprice-dependent demanden
dc.subject.keywordhorizontal product differentiationen
dc.subject.keyworddemand elasticityen
dc.subject.keywordexcess entry theoremen
dc.titlePrice-dependent demand in spatial models-
dc.typeWorking Paperen
dc.identifier.ppn684775085en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:dicedp:43en

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