英文摘要 |
On the issue of spatial competition, Zhou and Vertinsky (2001) (Z-V model) analyze a duopoly location using price competition in a growing market. They find that the late entrant always locates in the peripheral location (maximum differentiation). Our study explores the location of a duopoly using quantity competition in two markets (a demand-fixed market and a growing market) adding the consideration of congestion. We obtain the result different from Z-V model: the two firms will agglomerate at the new market (minimum differentiation) when the congestion parameter is small and will separate at different market (maximum differentiation) when the congestion parameter is large. In addition, this study also analyzes the impact on the firm’s profit and the time of entry when the parameters change. |