Papers of the Regional Science Association

, Volume 69, Issue 1, pp 83–99 | Cite as

Product and price competition in a regional context

  • Charlie Karlsson
  • Jan Larsson
Regional Science in Business


In this paper, we use the concepts product and price competition to describe the early and late stages of the product cycle respectively. Central regions are expected to offer locational advantages to product competing production, while the opposite is true for price competing production. Based upon this expectation we develop hypotheses concerning the characteristics of product and price competition in central and peripheral regions with regard to productivity, employment, gross profit shares, and changes in such characteristics over time. Our empirical tests show that the differences between the periphery and the central regions with regard to product and price competition are in line with our expectations.


Central Region Late Stage Empirical Test Peripheral Region Product Cycle 
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Copyright information

© The Regional Science Association 1989

Authors and Affiliations

  • Charlie Karlsson
    • 1
  • Jan Larsson
    • 1
  1. 1.Regional Science Research UnitUniversity of KarlstadKarlstadSweden

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