M. I. Maldonado, S.Carbó Valverde, Miguel Angel Fortes Escalona
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Cournot Competition In A Two-Dimensional Circular City
In this paper we develop a Cournot competition model between two firms located in a two-dimensional circular city. This city consists of a circumference and all the points in its interior for which movement between any two points can be made in a straight line. Firms have zero costs and market demand is symmetrically linear. We show that there exists a single state of equilibrium in which the firms agglomerate in the centre of the circle.
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