Abstract
This paper examines the comparative statics of firms' equilibrium prices (generated by price reaction functions) in spatially competitive oligopolies. Implications for firms' pricing behaviors—generated by asymmetrical price conjectural variations—are discussed for one-dimensional markets. The analytical properties of equilibrium prices are first established for the case of inelastic consumer demand. Then the results of a price sensitivity analysis of market parameters (demand intensity, transportation rate, etc.) are presented for the more complicated case of elastic consumer demand. The paper demonstrates that the geographic extents of rivals' market shares are not only functions of firms' pricing behaviors but also the interaction of such behaviors with various market parameters.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
