Abstract
Within the framework of bilevel facility location models in spatial economic competition, there are several different submodels that one can employ to describe economic competition and determine a market equilibrium among firms on the network. Such economic models include the classic spatial price equilibrium (SPE) model, first introduced by Samuelson (1952), and enhanced for over three decades since then (e.g., Takayama and Judge, 1964) as well as models of oligopolistic competition (e.g., Cournot-Nash). In this chapter, we will review the classic SPE model and the oligopolistic spatial Cournot-Nash model. Additionally, we will review non-extremal versions of these models (i.e., variational inequality formulations) and consider their existence and uniqueness properties.
Keywords
- Variational Inequality
- Profit Function
- Supply Function
- Mathematical Programming Problem
- Perfect Competition
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Some of the material in this chapter is adapted and expanded from Friesz, Miller and Tobin (1988A), from Friesz, Tobin and Miller (1989) and from Miller, Tobin and Friesz (1991).
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© 1996 Springer-Verlag Berlin Heidelberg
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Miller, T.C., Friesz, T.L., Tobin, R.L. (1996). Spatial Market Equilibria on Networks. In: Equilibrium Facility Location on Networks. Advances in Spatial and Network Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-03280-0_4
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DOI: https://doi.org/10.1007/978-3-662-03280-0_4
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-08227-6
Online ISBN: 978-3-662-03280-0
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