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Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/2707

Title: Agglomeration in a vertically-linked oligopoly
Authors: Pontes, José Pedro
Keywords: Agglomeration
Intermediate Goods
Spatial Oligopoly
Issue Date: 2004
Publisher: ISEG – Departamento de Economia
Citation: Pontes, José Pedro. 2004. "Agglomeration in a vertically-linked oligopoly". Instituto Superior de Economia e Gestão - DE Working papers nº 6-2004/DE/UECE
Series/Report no.: DE Working papers;nº 6-2004/DE/UECE
Abstract: This paper examines the location of three vertically-linked firms. In a spatial economy composed of two regions, a monopolist firm supplies an input to two consumer goods firms that compete in quantities. The interaction between the firms is modelled by means of a three-stage game, where the firms first select locations, then the upstream firm chooses thedelivered prices of the intermediate good, and finally the downstream firmsselect quantitiesofthe final good. It is concluded that agglomeration is more likely to occur when the ratio between the transport cost of the intermediate good and the transport cost of the final good is higher. If this proportion is low, the existence of an agglomeration varies nonmonotonically with transport costs.
URI: http://hdl.handle.net/10400.5/2707
ISSN: 0874-4548
Publisher version: https://aquila1.iseg.utl.pt/aquila/getFile.do?method=getFile&fileId=26407
Appears in Collections:UECE - Documentos de Trabalho / UECE - Working Papers
DE - Documentos de trabalho / Working Papers

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