Abstract
We reconsider a Cournot spatial competition in a circular city. We discuss an oligopoly model. We find that two equilibria exist if the transport cost function is nonlinear in distance, while a continuum of equilibria exists if it is linear. Thus, the result of the real indeterminacy of equilibria in the linear transport cost case is knife edge.
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Matsumura, T., Matsushima, N. Spatial Cournot competition and transportation costs in a circular city. Ann Reg Sci 48, 33–44 (2012). https://doi.org/10.1007/s00168-010-0399-z
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DOI: https://doi.org/10.1007/s00168-010-0399-z