Iceberg transport technologies in spatial competition. Hotelling reborn

Xavier Martinez-Giralt and José María Usategui ()

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: Transport costs in address models of differentiation are usually modeled as separable of the consumption commodity and with a parametric price. However, there are many sectors in an economy where such modeling is not satisfactory either because transportation is supplied under oligopolistic conditions or because there is a difference (loss) between the amount delivered at the point of production and the amount received at the point of consumption. This paper is a first attempt to tackle these issues proposing to study competition in spatial models using an iceberg-like transport cost technology allowing for concave and convex melting functions.

Keywords: Spatial Competition; Iceberg transport costs (search for similar items in EconPapers)
JEL-codes: D42 L12 R32 (search for similar items in EconPapers)
Pages: 22
Date: 2009-11-11
New Economics Papers: this item is included in nep-com, nep-geo, nep-ind and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:aub:autbar:791.09

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