Digitale Medien
Oxford, UK
:
Blackwell Publishing Ltd
Journal of regional science
29 (1989), S. 0
ISSN:
1467-9787
Quelle:
Blackwell Publishing Journal Backfiles 1879-2005
Thema:
Geographie
,
Wirtschaftswissenschaften
Notizen:
Equilibrium in spatial models invariably depends on firms' conjectures about how competitors will react to their price changes. This paper analyzes spatial price and location equilibrium when firms hold consistent (i.e. correct) conjectures. Most spatial models assume an exogenous conjecture. Consistent conjectures are one method, albeit a controversial one, for endogenizing the conjecture.We show that the consistent conjecture about a competitor's reaction to a price change in the simplest case is 1/3. When demand is elastic the consistent conjecture is a decreasing function of the radius. It is always below 1/3 and can be negative. In the third model, we show that the consistent conjecture declines as the number of dimensions and the number of competitors increases.
Materialart:
Digitale Medien
URL:
http://dx.doi.org/10.1111/j.1467-9787.1989.tb01218.x
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