Equilibrium locations in a mixed duopoly with sequential entry in real time

C-Tier
Journal: Economic Modeling
Year: 2011
Volume: 28
Issue: 3
Pages: 1211-1218

Authors (2)

Li, Changying (Shandong University) Zhang, Jianhu (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We investigate a mixed duopoly model where a public firm and a private firm enter a market sequentially over an infinite time horizon, with and without uncertainty over the follower's entry date. We assume that there is a unit-length linear city and show that, if the public firm moves first, equilibrium location falls inside the second and third quartiles. The later the follower is expected to enter, the closer the two firms are. However, if the private firm acts first, it moves aggressively to locate at the middle point (one-half), forcing the public firm to locate nearer the periphery (one-sixth), to minimize consumers' transportation cost. In addition, social welfare is strictly greater when the public firm moves as the leader.

Technical Details

RePEc Handle
repec:eee:ecmode:v:28:y:2011:i:3:p:1211-1218
Journal Field
General
Author Count
2
Added to Database
2026-01-25