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Space and competition

A puzzle

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Abstract

We review the argument that incorporating space in economic models has two important consequences: first, the hypothesis of perfect competition becomes untenable, and second, the distinction between private and public goods becomes blurred. We summarize recent work pointing to alternative incentive systems that might lead to efficient location decisions and pricing policies.

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Authors and Affiliations

  1. Graduate School of Public Policy, University of California, 2607 Hearst Av., 94720, Berkeley, CA, USA

    Suzanne Scotchmer

  2. Department of Economics, CORE and Université de Paris I-Sorbonne, 12 Place du Panthéon, F-75231, Paris, France

    Jacques-François Thisse

Authors
  1. Suzanne Scotchmer
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  2. Jacques-François Thisse
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Scotchmer, S., Thisse, JF. Space and competition. Ann Reg Sci 26, 269–286 (1992). https://doi.org/10.1007/BF01581386

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