Credible collusion in a model of spatial competition

  1. Chamorro Rivas, José María
  2. Arévalo Tomé, Raquel
Revista:
Documentos de traballo do Departamento de Economía Aplicada

Any de publicació: 2004

Número: 4

Tipus: Article

Resum

In a spatial model with quantity setting firms, we analyze the possibility of cooperation in a long term relationship, where firms compete in location. It is found that endogeneizing the location decisions makes collusion more difficult.