Market structure and the production-location decision
Journal
Regional Science and Urban Economics
Journal Volume
20
Journal Issue
4
Pages
509-520
Date Issued
1991
Author(s)
Abstract
This paper presents a conjectural variation approach to examine the effects of market structure on the optimum location and output level for each firm in an imperfectly competitive industry within the Weberian framework. The main results derived in this paper are: (i) the more collusive the market structure, the less will be the optimal output per firm, (ii) the reduction in output is greater when location variables are treated endogenously than when they are treated exogenously, and (iii) the optimal location is independent of market structure if the production function is constant returns to scale. © 1990.
SDGs
Type
journal article