Credible collusion in a model of spatial competition
Revue:
Documentos de traballo do Departamento de Economía Aplicada
Année de publication: 2004
Número: 4
Type: Article
Résumé
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.