, Volume 6, Issue 2, pp 103-108

Differentiated Bertrand markets: restoring the minimum differentiation principle

Purchase on Springer.com

$39.95 / €34.95 / £29.95*

Rent the article at a discount

Rent now

* Final gross prices may vary according to local VAT.

Get Access


I introduce non-perfect substitutability between products into the spatial Bertrand model. I show that if goods are complements, the firms always agglomerate. If goods are substitutes, the firms agglomerate if the transportation costs are not too high.

I thank A. Batabyal (the Editor) and two anonymous referees for useful comments and suggestions.