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Discussion Paper Details

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Title: The Implications of Space for Competition

Author(s): Suzanne Scotchmer and Jacques-François Thisse

Publication Date: October 1992

Keyword(s): General Equilibrium, Local Public Goods, Location and Spatial Competition

Programme Area(s): Applied Macroeconomics

Abstract: Incorporating space in economic models has two important consequences. First, the hypothesis of perfect competition becomes untenable, and second, the distinction between private and public goods becomes blurred. We review arguments that lead to these conclusions and summarize recent work pointing to other incentive systems that might lead to efficient location decisions and pricing policies.

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Bibliographic Reference

Scotchmer, S and Thisse, J. 1992. 'The Implications of Space for Competition'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=724