Models of spatial competition: A critical review* |
| |
Authors: | Ricardo Biscaia Isabel Mota |
| |
Affiliation: | 1. Faculdade de Economia, Universidade do Porto, Rua Dr. Roberto Frias, 4200‐464 Porto, Portugal (e‐mail: ricardo_biscaia@hotmail.com, imota@fep.up.pt);2. CIPES – Centre for Research in Higher Education Policies;3. CEF.UP – Centre for Economics and Finance at University of Oporto |
| |
Abstract: | This critical review focuses on the development of spatial competition models à la Hotelling in which the location choice of firms plays a major role. We start by quantifying the research in this field by using bibliometric tools. Thereafter, this study identifies the main research paths within spatial competition modelling. Specifically, the type of strategy (Bertrand vs. Cournot competition), the assumptions that are made in respect to the market (linear vs. circular), production costs, transportation costs, the number of firms and the type of information (complete vs. incomplete) and their effects on the location equilibria are also discussed. |
| |
Keywords: | L13 R10 D82 Spatial competition critical review Hotelling game theory |
|
|