dc.contributor | 財政系 | |
dc.creator (作者) | Sun, C.-H.;Lai, Fu-Chuan | |
dc.creator (作者) | 賴孚權 | zh_TW |
dc.date (日期) | 2013-06 | |
dc.date.accessioned | 28-May-2015 17:39:34 (UTC+8) | - |
dc.date.available | 28-May-2015 17:39:34 (UTC+8) | - |
dc.date.issued (上傳時間) | 28-May-2015 17:39:34 (UTC+8) | - |
dc.identifier.uri (URI) | http://nccur.lib.nccu.edu.tw/handle/140.119/75356 | - |
dc.description.abstract (摘要) | This paper provides a simple, realistic, and very slightly modified version of the production technology in Hotelling`s (Econ J 39:41-57, 1929) spatial model with linear transportation costs to overcome the nonexistence problem of equilibrium-decreasing returns to scale. It is shown that a pure strategy Nash equilibrium in price competition always exists for all location pairs and guarantees uniqueness if we utilize a coalition-proof refinement introduced by Bernheim et al. (J Econ Theory 42:1-12, 1987). Decreasing returns to scale reduce the profit a firm can capture through price undercutting and stabilize the price equilibrium due to the increasing average production cost of firms. As a consequence, duopoly firms agglomerating at the center of a line are shown to be at the unique location equilibrium. This paper confers a new validity to the so-called principle of minimum differentiation, in some sense, with the least deviation from the original Hotelling (Econ J 39:41-57, 1929) model. © 2012 Springer-Verlag. | |
dc.format.extent | 255797 bytes | - |
dc.format.mimetype | application/pdf | - |
dc.relation (關聯) | Annals of Regional Science, 50(3), 953-971 | |
dc.subject (關鍵詞) | agglomeration; competition (economics); market conditions; modeling; price dynamics; production cost; returns to scale; spatial analysis | |
dc.title (題名) | Hotelling was right with decreasing returns to scale and a coalition-proof refinement | |
dc.type (資料類型) | article | en |
dc.identifier.doi (DOI) | 10.1007/s00168-012-0528-y | |
dc.doi.uri (DOI) | http://dx.doi.org/10.1007/s00168-012-0528-y | |