Credible collusion in a model of spatial competition

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

Year of publication: 2004

Issue: 4

Type: Article

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Abstract

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.

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