Production-location decision and free entry oligopoly: A correction
Resource
Journal of Urban Economics,61(3),576-579.
Journal of Urban Economics, 61(3), 576-579
Journal
Journal of Urban Economics
Journal Volume
61
Journal Issue
3
Pages
576-579
Date Issued
2007
Author(s)
Abstract
This paper shows that there is no interior solution in Mai-Hwang's 1992 oligopolistic location model with free entry when the production function exhibits constant or decreasing returns to scale. The comparative static results of the impact of a demand change on the location decision only apply to the case where the production function exhibits increasing returns to scale. It re-examines the impact of a demand change on the location decision of an oligopolistic firm and corrects the propositions derived by [C.C. Mai, H. Hwang, Production-location decision and free entry oligopoly, Journal of Urban Economics 33 (1992) 252-271. Reprinted in: M.L. Greenhut, G. Norman (Eds.), The Economics of Location, vol. I: Location Theory, Edward Elgar, Aldershot, 1995]. © 2006 Elsevier Inc. All rights reserved.
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journal article
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