TY - JOUR
AU - Hamoudi, Hamid
AU - Rodríguez Iglesias, Isabel M.
AU - Sanz Martín-Bustamante, Marcos
PY - 2015/09/07
Y2 - 2024/02/25
TI - The equivalence of convex and concave transport cost in a circular spatial model with and without zoning
JF - Estudios de Economía
JA - Estudios de economía
VL - 42
IS - 1
SE - Articles
DO -
UR - https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/37255
SP - pp. 5-20
AB - This article depicts a location game in a circular market. The equivalence results between a convex and a concave transport cost are reexamined by assuming an arbitrary length. In contrast to previous research the solution found shows that the equivalence relationship depends on the space length. Furthermore, the analysis is extended to a circular model with unitary length and zoning. In this case equivalence does not hold. Moreover, non-existence of equilibrium is shown under strictly linear quadratic functions. Surprisingly, equilibrium exists for a concave quadratic function but not for a convex quadratic function.
ER -