Equilibria and entry in two interdependent spatial markets

  • Schmitt N
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This paper investigates the market equilibrium and entry location in two interdependent spatial markets. It is first shown that for some international trade problems, an explicit two-market spatial model with a representative firm brings more general results than those obtained with existing approaches. Then, modifying the game, entry location is analyzed and import replacement strategy is shown to be a strong feature of the model. This possible strategy of entry provides an incentive to incumbent firms to establish multi-market production. ?? 1993.

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  • Nicolas Schmitt

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