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Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/2747

Title: A Geographic Game with Intermediate Goods
Authors: Pontes, José Pedro
Keywords: Noncooperative games
Location
Intermediate Goods
New Economic Geography
Issue Date: 2001
Publisher: ISEG – Departamento de Economia
Citation: Pontes, José Pedro. 2001. "A Geographic Game with Intermediate Goods". Instituto Superior de Economia e Gestão - DE Working papers nº 10-2001/DE/UECE
Series/Report no.: DE Working papers;nº 10-2001/DE/UECE
Abstract: The paper treats a noncooperative game where an upstream firm and two downstream firms select locations in a spatial system made by two asymmetric countries. The location of the upstream firm is indeterminate and it is assigned to the smaller country, in order to avoid triviality of the location problem. The Nash equilibria of locations of the downstream firms is characterized in the parameter space (coefficient of input transactions, transport cost) although not everywhere uniquely. Keeping the degree of technological interdependency high, economic integration, as measured by the decline of transport costs, shifts production from the country where the input is produced to the larger country. In opposition, keeping transport costs low, technical progress, as measured by the intensity of input transactions, shifts production from the large market to the country where the input is produced.
URI: http://hdl.handle.net/10400.5/2747
ISSN: 0874-4548
Publisher version: https://aquila1.iseg.utl.pt/aquila/getFile.do?method=getFile&fileId=23820
Appears in Collections:UECE - Documentos de Trabalho / UECE - Working Papers
DE - Documentos de trabalho / Working Papers

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