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.