We solve a mixed spatial duopoly with a generic log-concave consumers' distribution. We show that the sub-game perfect equilibrium in prices and locations exists and is generally inefficient, so that the efficiency in the standard uniform distribution case stands out as an exception. Notable examples show that the inefficiency may increase as the distribution becomes more concentrated.
Benassi, C., Chirco, A., Colombo, C. (2017). Mixed spatial duopoly, consumers' distribution and efficiency. ECONOMICS LETTERS, 156, 74-77 [10.1016/j.econlet.2017.04.017].
Mixed spatial duopoly, consumers' distribution and efficiency
BENASSI, CORRADO;CHIRCO, ALESSANDRA;COLOMBO, CATERINA
2017
Abstract
We solve a mixed spatial duopoly with a generic log-concave consumers' distribution. We show that the sub-game perfect equilibrium in prices and locations exists and is generally inefficient, so that the efficiency in the standard uniform distribution case stands out as an exception. Notable examples show that the inefficiency may increase as the distribution becomes more concentrated.File in questo prodotto:
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