DP724 The Implications of Space for Competition
|Author(s):||Suzanne Scotchmer, Jacques-François Thisse|
|Publication Date:||October 1992|
|Keyword(s):||General Equilibrium, Local Public Goods, Location, Spatial Competition|
|JEL(s):||D40, H41, L13, R10|
|Programme Areas:||Applied Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=724|
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.