Publicação

Input specificity and location

Ver documento

Detalhes bibliográficos
Resumo:In a two-region economy, two upstream firms supply an input to two consumer goods firms. For two different location patterns (site specificity and co-location of the suppliers), the firms play a three-stage game: the input suppliers select transport rates; then they choose outputs; finally the buyers select quantities of the consumer good. It is concluded that thesitespecificity of the input leads to a high transport cost and to its specialized adaptation to the needs of the local user.
Autores principais:Pontes, José Pedro
Assunto:Technological Choice Spatial Oligopoly Vertically-linked Industries
Ano:2005
País:Portugal
Tipo de documento:working paper
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:In a two-region economy, two upstream firms supply an input to two consumer goods firms. For two different location patterns (site specificity and co-location of the suppliers), the firms play a three-stage game: the input suppliers select transport rates; then they choose outputs; finally the buyers select quantities of the consumer good. It is concluded that thesitespecificity of the input leads to a high transport cost and to its specialized adaptation to the needs of the local user.