Equilibria for circular spatial Cournot markets

Abstract

This paper investigates a location-quantity model in a circular city. Pal (1998) investigates a duopoly model and finds that an equidistant location pattern appears in equilibrium. Matsushima (2001a) investigates an n-firm oligopoly model and shows that, if the number of firms is even, another equilibrium exists where half of the firms agglomerate at one point and the other firms agglomerate at the opposite point. We find that there exist many other equilibrium patterns that include the above two patterns as special cases.circular city