Cournot Competition in a Two-Dimensional Circular City

10 Pages Posted: 7 Jan 2005

See all articles by Maria Isabel Berenguer Maldonado

Maria Isabel Berenguer Maldonado

Universidad de Granada

Santiago Carbo-Valverde

Bangor Business School; Universidad Complutense de Madrid (UCM) - Colegio Universitario de Estudios Financieros (CUNEF)

Miguel Angel Fortes Escalona

Universidad de Granada

Abstract

In this paper we develop a Cournot competition model between two firms located in a two-dimensional circular city. This city consists of a circumference and all the points in its interior for which movement between any two points can be made in a straight line. Firms have zero costs and market demand is symmetrically linear. We show that there exists a single state of equilibrium in which the firms agglomerate in the centre of the circle.

Suggested Citation

Berenguer Maldonado, Maria Isabel and Carbo-Valverde, Santiago and Fortes Escalona, Miguel Angel, Cournot Competition in a Two-Dimensional Circular City. Available at SSRN: https://ssrn.com/abstract=644543

Maria Isabel Berenguer Maldonado (Contact Author)

Universidad de Granada ( email )

Granada
Spain

Santiago Carbo-Valverde

Bangor Business School ( email )

Bangor Business School
College Road
Gwynedd LL57 2DG, Wales LL57 2DG
United Kingdom

Universidad Complutense de Madrid (UCM) - Colegio Universitario de Estudios Financieros (CUNEF) ( email )

Serrano Anguita 9
Madrid, Madrid 28004
Spain

Miguel Angel Fortes Escalona

Universidad de Granada

Granada
Spain

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