Credible collusion in a model of spatial competition
Zeitschrift:
Documentos de traballo do Departamento de Economía Aplicada
Datum der Publikation: 2004
Nummer: 4
Art: Artikel
Zusammenfassung
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.