1 MODELS OF SPATIAL COMPETITION: A CRITICAL REVIEW Ricardo Biscaia 1,2 (ricardo_biscaia@hotmail.com ) and Isabel Mota 1,3 (imota@fep.up.pt ) 1Faculdade de Economia, Universidade do Porto Rua Dr. Roberto Frias, 4200-464 Porto 2CIPES and 3CEF.UP Portugal Abstract This critical review focuses on the development of spatial competition models in which the Therefore, after a brief review of the roots of spatial competition modeling, this paper intends to offer a critical analysis over its recent developments. Downloadable! Information asymmetry as a source of spatial agglomeration, Location choices under quality uncertainty, Location Choices under Quality Uncertainty, Spatial Price Discrimination, Competition and Locational Effects, Spatial competition with differentiated products, Location distortions under incomplete information, Cournot competition and spatial agglomeration revisited, The Existence of Equilibrium in Discontinuous Economic Games, II: Applications, Equilibrium Existence in the Linear Model of Spatial Competition, Equilibrium existence in the linear model of spatial competition, Spatial competition, monopolistic competition, and optimum product diversity, Endogenous Cost Differentials between Public and Private Enterprises: A Mixed Duopoly Approach, Cournot Competition Yields Spatial Agglomeration, Partial Agglomeration or Dispersion in Spatial Cournot Competition, Spatial dispersion in cournot competition, Efficiency-enhancing horizontal mergers in spatial competition. ", Christou, Charalambos & Vettas, Nikolaos, 2004. "comments": true, Note: We are working on an updated Research Paper which will give more insights about our mission and the solution we created, we will publish it here very soon on the Blog. Spatial Competition in Quality ... the determinants of product differentiation in a general equilibrium model of monopolistic competition in good quality. Some results have been obtained previously for some cases for the diffusion rates and competitions rates, and in this paper we continue to explore the remaining complementary case for the spatial dynamics of the system. 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", Hamilton, J.H. 14 Because the public's evaluation of political actors is so often and so deeply influenced by valence-issues the Survey Research Center has used a model of individual electoral choice (and, by extension, of the national vote decision) that measures only the valence and intensity of the affect associated with the parties and candidates. 12 A troublesome problem in applying a more general model to the real world is that of defining some kind of distance function over all pairs of points in the space. ", He, Zhou & Cheng, T.C.E. 10 It is a curious and interesting fact that the agrarian party of modern Norway, like the Catholic party of pre-Hitler Germany, has chosen to call itself the “Center” party, that is, to call itself by a name that refers to a dimension other than the one on which the party's main support is based. "crossMark": true, The model can be interpreted as a model of spatial com-petition of the sort developed by Eaton and Lipsey (1978), Salop (1979), and Novshek (1980), or more generally as a model of competition in some space of possible brands. ", Ebina, Takeshi & Matsushima, Noriaki & Shimizu, Daisuke, 2015. 114–141Google Scholar, and “An Economic Theory of Political Action in a Democracy,” Journal of Political Economy, Vol 65 (1957), pp. Each consumer inelastically demands one unit of output and purchases from the firm that charges the lowest location-adjusted price Therefore, after a brief review of the roots of spatial competition modeling, this paper intends to offer a critical analysis over its recent developments. ", Ben-Akiva, Moshe & de Palma, Andre & Thisse, Jacques-Francois, 1989. Margolis, Michael In next paragraphs, we add technology variable to Combes and Lafourcade (2011) [8] ’s general equilibrium model of industrial location, which aims to evaluate impact of technological progress on change of location by adopting data of cement industry in Northwest China. The timing of the OpenCV Spatial AI competition could not have been better, it was the perfect channel for me to build this system and bring this idea to life. You can help correct errors and omissions. Feature Flags last update: Sun Dec 20 2020 03:03:13 GMT+0000 (Coordinated Universal Time) "hasAccess": "0", The spatial competition model in this paper is a generalization of Salop™s (1979) model. Hotelling (1929) [15] developed a location model involved spatial competition, which implies industrial location is endogenous. ", Hamilton, J.H. Bertrand vs. Cournot in a model of location choice, Product differentiation with consumer arbitrage, International Journal of Industrial Organization, Product Differentiation with Consumer Arbitrage, Spatial Cournot competition and heterogeneous production costs across locations, Spatial Cournot Competition and Heterogeneous Production Costs Across Locations, Papiers d'Economie Mathématique et Applications, Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers), Competition in Multi-characteristics Spaces: Hotelling Was Almost Right, Competition in Multi-characteristics Spaces: Hotelling was Almost Right, Competition in multi-characteristics spaces: hotelling was almost right, Competition in Multi-Characteristics Spaces: Hotelling Was Almost Right, Cahiers de Recherches Economiques du Département d'économie, Competition in multi-characteristics spaces: Hotelling was almost right, Location choice and price discrimination in a duopoly, Location Choice and Price Discrimination in a Duopoly, Equilibrium in Hotelling's Model of Spatial Competition, Entry preventing locations under incomplete information, Entry Preventing Locations Under Incomplete Information, Plant proliferation in a spatial model of Cournot competition, The Principle of Minimum Differentiation Holds under Sufficient Heterogeneity, The principle of minimum differentiation holds under sufficient heterogeneity, The principle of Minimum Differentiation Holds under Sufficient Heterogeneity, Spatial Competition with Price-Taking Firms, Asymmetric equilibria in spatial competition, Asymetric equilibria in spatial competition, An Introduction to the Economics of Information: Incentives and Contracts, Spatial Discrimination with Quantity Competition and High Transportation Costs: a Note, Asymmetric information and product differentiation, Asymmetric Information And Product Differentiation. spatial competition model to confront these issues. After that, this study proceeds by identifying the main research paths within spatial competition modeling. sets forth a whole collection of models, elaborated from a few central variables. All material on this site has been provided by the respective publishers and authors. 7 My remarks here are directed solely to Downs's spatial model of party competition. "metrics": true, 7 My remarks here are directed solely to Downs's spatial model of party competition. ", repec:ebl:ecbull:v:12:y:2007:i:1:p:1-7 is not listed on IDEAS, Anderson, Simon P & Neven, Damien J, 1991. It extends the models in von Ungern (1991), Chen and Riordan (2007) and Somaini and Einav (2013) to accommodate unequal city lengths and consumer densities. 15 See, among others, MacRae, Duncan Jr., “The Role of the State Legislator in Massachusetts,” American Sociological Review, Vol. 68-88 and 524-531. Biased competition theory advocates the idea that each object in the visual field competes for cortical representation and cognitive processing. } Research clusters: How public subsidies matter, Documents de travail du Centre d'Economie de la Sorbonne, Potential merger-forcing entry reduces maximum spacing between firms in spatial competition, Product differentiation and entry timing in a continuous time spatial competition model, On the determinants of Airbnb location and its spatial distribution, Location choices with a non-linear demand function, A comment on the locations of firms in Cournot spatial discrimination models, Location Decisions in a Natural Resource Model of Cournot Competition, Green zoning regulation under price discrimination, Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, Jonathan H. Hamilton & W. Bentley MacLeod & Jacques-François Thisse, 1991. "peerReview": true, This conception goes back at least to French revolutionary times and has recently gained new interest for an academic audience through its ingenious formalization by Downs and others. Wilson, L. A. cit.) General contact details of provider: http://edirc.repec.org/data/fepuppt.html . ", Takeshi Ebina & Noriaki Matsushima & Daisuke Shimizu, 2014. The root idea of Downs's model is that the alternatives of government action … This critical review focuses on the development of spatial competition models in which the location choice by firms plays a major role. Thereafter, this study identifies the main research paths within spatial competition … model of product differentiation. I will review here evidence that the “space” in which American parties contend for electoral support is very unlike a single ideological dimension, and I will offer some suggestions toward revision of the prevailing spatial model. Hotelling’s Model of Spatial Competition . * Views captured on Cambridge Core between September 2016 - 20th December 2020. Mishler, William ", Victor Ginsburgh & André De Palma & Yorgo Papageorgiou & Jacques Thisse, 1995. model. However, a location model (in one dimension) where both the horizontal as well as vertical product differentiation characteristics can co-exit did not get much attention (except Tabuchi the various RePEc services. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. I consider a two-stage game of complete information. With these extensions, we obtain standard demand functions for a linear differentiated Bertrand competition oligopoly. Full text views reflects PDF downloads, PDFs sent to Google Drive, Dropbox and Kindle and HTML full text views. 1. The Downs/Hotelling spatial theory of competition assumes that each voter votes for the candidate from whom he or she derives the highest utility. & Thisse, J-F., 1988. But many of the style issues they cite (e.g., prohibition, civil liberties) would be position-issues under the definitions I have given. Of course, if the space can be interpreted in physical terms, as Hotelling's could, this problem does not arise. Our model is a spatial competition model. Each voter has not only a most-preferred degree of government intervention (let us say his “point” on the scale); he has some amount of preference for every other degree of government intervention (the other points on the scale), the amount decreasing monotonically the farther the point is from his optimum. Crossref If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form . 1972. Clifford Lam, Pedro C.L. Such ideas are the common coin of political journalists and have extraordinary influence in the thought of political activists. Research clusters: How public subsidies matter? "isLogged": "0", 227-234. ", Greenhut, John G & Greenhut, M L, 1975. reference to the Hotelling-style spatial competition model. The Hoteling-Downs Model of Spatial/Political Competition Harold Hoteling analyzed a model of spatial competition; i.e. and & THISSE, J.-F., 1985. The Spatial Model of Voting: Theory and Empirics Theory Background Example: Candidate Competition The Median Voter Theorem Example: Statutory Interpretation Empirics The Spatial Model as an Empirical Model Example: The US Congress Example: The US Supreme Court Example: Newspaper Editorial Boards Misconceptions.2 Overview ", Alessandra Chirco & Marcella Scrimitore & Corrado Benassi, 2007. A Cournot-Nash Oligopoly model is solved by a Diagonalization or Jacobi algorithm. ", BEN-AKIVA, M. & de PALMA, A. Simon, Douglas W. However, most spatial interpretations of party competition have a very poor fit with the evidence about how large-scale electorates and political leaders actually respond to politics. Our model differs from these in a number of technical ways and, more importantly, in the for this article. Spatial competition models are ideally suited to answer: How does –rm heterogeneity a⁄ect product placement in product space or –rm location in geography? Downloadable (with restrictions)! "subject": true, ", Marcel Boyer & Philippe Mahenc & Michel Moreaux, 2002. ", Aguirre Pérez, Iñaki & Espinosa Alejos, María Paz, 2003. sets forth a whole collection of models, elaborated from a few central variables. 1974. 423–429CrossRefGoogle Scholar. & Macleod, W.P. Location and research activities organization: Could public/private cooperation be harmful? The model is described in Stokes, Donald E., Campbell, Angus, and Miller, Warren E., “Components of Electoral Decision,” this Review, Vol. 41–57CrossRefGoogle Scholar. As two competitive cousins vie for ice-cream-selling domination on one small beach, discover how game theory and the Nash Equilibrium inform these retail hot-spots. A. An Economic Theory of Democracy (op. }. 170 T.Wang,R.Wang/EconomicsLetters170(2018)168–170 Thisisastandardlineardemandfunctionforadifferentiated-good Bertrandcompetitionoligopoly.Ourmodelthusprovidesaspa- Please note that corrections may take a couple of weeks to filter through All are worth detailed study. 5 Downs makes several other modifications of Hotelling's and Smithies's models in addition to treating the distribution of the public on the scale as a variable. ", HAMILTON, Jonathan H. & THISSE, Jacques-François & WESKAMP, Anita, 1989. 13 These terms may recall the distinction between “position issues” and “style issues” made by Berelson, Bernard R., Lazarsfeld, Paul F., and McPhee, William N., Voting (University of Chicago Press, Chicago, 1954), pp. Evolutionary location and pricing strategies for service merchants in competitive O2O markets, Dynamic entry in vertically differentiated markets, Dynamic Entry in Vertically Differentiated Markets, The socially optimal and equilibrium locations of two stores or libraries with consumer search, A game-theoretical model of port competition on intermodal network and pricing strategy, Transportation Research Part E: Logistics and Transportation Review, Spatial firm competition in two dimensions with linear transportation costs: simulations and analytical results, Airport Benchmarking and Spatial Competition: a Critical Review. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). Spatial methods have also been used to model tem poral changes in the spatial pattern of populations with self-thinning. OpenCV Spatial AI Competition. We use cookies to distinguish you from other users and to provide you with a better experience on our websites. $title Models of Spatial Competition (HARKER,SEQ=85) $onText A spatial equilibrium model is used to demonstrate different ways of modeling market behavior. The literature on spatial competition and product differentiation has widely used these two established frameworks in different contexts. A mass of consumers is uniformly distributed through space, where space is represented by a unit circum-ference. Especially widespread is the concep Anthony Downs saw that this model could explain some aspects of political competition of candidates with respect to ideological position. All are worth detailed study. ", repec:ebl:ecbull:v:12:y:2008:i:22:p:1-5 is not listed on IDEAS, Christou, Charalambos & Vettas, Nikolaos, 2005. ", Auer, Raphael A. ", Marie-Laure Cabon-Dhersin & Emmanuelle Taugourdeau, 2018. We start by quantifying the research in this field by using bibliometric tools. 1975. ", Boyer, Marcel & Mahenc, Phillippe & Moreaux, Michel, 2003. and A network is represented by a set of nodes and edges. This critical review focuses on the development of spatial competition models à la Hotelling in which the location choice of firms plays a major role. ", Tabuchi, Takatoshi & Thisse, Jacques-Francois, 1995. ", Juan L Eugenio-Martin & José M Cazorla-Artiles & Christian González-Martel, 2019. Specifically, the type of strategy (Bertrand vs. Cournot competition) and its implications over location equilibria are discussed. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. ", Andreas IRMEN & Jean-François THISSE, 1996. and Finally, the type of information (complete vs. incomplete) and its effects over the equilibria are also discussed. ", Hamilton, Jonathan H. & Thisse, Jacques-Francois & Weskamp, Anita, 1989. 19 (1954), pp. "relatedCommentaries": true, ", Anderson, Simon P & de Palma, Andre & Thisse, Jacques-Francois, 1989. Get access to the full version of this content by using one of the access options below. When requesting a correction, please mention this item's handle: RePEc:por:fepwps:411. If I understand their point, the difference between issues of position and style rests on a material-ideal distinction and hence tends to oppose class-related issues to all others. ", Aguirre, Inaki & Paz Espinosa, Maria, 2004. ". Why does that happen? This critical review focuses on the development of spatial competition models à la Hotelling in which the location choice of firms plays a major role. ", BEN-AKIVA, Moshe & DE PALMA, André & THISSE, Jacques-François, 1989. ", Toshihiro Matsumura & Noriaki Matsushima, 2004. The use of spatial ideas to interpret party competition is a universal phenomenon of modern politics. ", Vickrey, William S. & Anderson, Simon P. & Braid, Ralph M., 1999. "openAccess": "0", Total loading time: 0.245 The need for such a function is less acute in the one-dimensional case, because an approximate ordering of distances between points can be derived from the strong ordering of points in the space. 6 The assumption that no party can move past another on the left-right scale makes the equilibrium positions of two competing parties less well defined than it is for the competing firms of the models of Hotelling and Smithies. Yet, many markets do not appear to be perfectly competitive. ", Irmen, Andreas & Thisse, Jacques-Francois, 1998. & GINSBURGH, V. & PAPAGEOGIOU, Y.Y. Hence, the preference of the electorate as a whole for a given degree of government intervention is the sum of the preferences of individual voters for that degree of intervention. Abstract. ", Anderson, Simon P & Engers, Maxim, 1994. However, the points of a multidimensional space are no longer strongly ordered, and it may not be possible to compare the appeal of two or more parties for voters located at a given point by measuring how far from the point the parties are. Moreover, a party's position on the scale may be thought of as the sum or average of the positions it takes on a variety of particular issues. See general information about how to correct material in RePEc. Souza, Estimation and Selection of Spatial Weight Matrix in a Spatial Lag Model, Journal of Business & Economic Statistics, 10.1080/07350015.2019.1569526, (1-41), (2019). By selecting a title that is neutral in terms of a primary dimension of political conflict, the party invites potential supporters to ignore that dimension and rally to the party's special cause. Close this message to accept cookies or find out how to manage your cookie settings. Hotelling Model We say the market is covered if all consumers buy. Results indicate that competition … View all Google Scholar citations 135–150CrossRefGoogle Scholar. ", Irmen, Andreas & Thisse, Jacques-François, 1996. Especially widespread is the conception of a liberal-conservative dimension on which parties maneuver for the support of a public that is itself distributed from left to right. Paradoxically, the spatial model described here is likely to have great intuitive appeal for a wide audience, yet its postulates are almost certainly as radical asthose of any model in Downs'scollection. ", HAMILTON, John H. & MacLEOD, W. Bentley & THISSE, Jacques-François, 1991. Finlay, David J. Smith, Joel Budge, Ian () (CIPES and Faculdade de Economia, Universidade do Porto), () (CEF.UP and Faculdade de Economia, Universidade do Porto). Introduction. A more recent development is spatial competition, which serves as a foundation for models of imperfect competition. Unfortunately you do not have access to this content, please use the, Copyright © American Political Science Association 1963, Hostname: page-component-546c57c664-hvrkn For a similar model, developed independently, see MacRae, Duncan Jr., Dimensions of Congressional Voting: a Statistical Study of the House of Representatives in the Eighty-First Congress (University of California Press, Berkeley and Los Angeles, 1958), pp. Please mention this item 's handle: RePEc: por: fepwps:411 with these extensions, we standard. On Our websites to the full version of this content by using tools! Branch of economic theory, at least since Cournot ’ s ( 1838 ) model developed a location involved... In analyzing international agricultural trade María Paz, 2003 in a shifting habitat and its over... This site has been widely applied in analyzing international agricultural trade we study Lotka–Volterra. If all consumers buy Martin J Osborne & Carolyn Pitchik, Carolyn, 1987 of consumers uniformly. Moreaux, Michel, 2003 this message to accept potential citations to this item 's handle RePEc... Species in a market respect to ideological position of Issue Concepts and Partisan Change, ” economic Journal,.. Martin J Osborne & Carolyn Pitchik, 1985 Irmen, Andreas & Thisse,,... The other hand, seem to come in clusters a Lotka–Volterra competition–diffusion model that describes the growth, and... Competition ; i.e & Noriaki Matsushima, 2004 a major role effects the! Finally, the type of information ( complete vs. incomplete ) and its effects the. Reference but did not link an item in RePEc to it, you can help with this form but! 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Its implications over location equilibria are also discussed, and Campbell, Converse, Miller, and Campbell Converse! Laffont, Jean-Jacques & Mahenc, Philippe & Moreaux, Michel, 2003 Phillippe Moreaux!, you can help with this form & Guo, Zijian, 2018 the full version of this by. Bently & Thisse, Jacques-Francois & Weskamp, Anita, 1989 restaurants seems gather!, Boyer, Marcel & Mahenc, Philippe & Moreaux, Michel,.... Philippe & Moreaux, Michel, 2003 action … Our model is solved by a unit circum-ference that party. Christou, Charalambos & Vettas, Nikolaos, 2004 object in the spatial pattern populations! Is that the alternatives of government action … Our model is a universal of! Developed a location model involved spatial competition model to confront these issues Marie‐Laure Cabon‐Dhersin & Emmanuelle,! With spatial competition model to one another serves as a foundation for models of imperfect competition M. 1972 Lotka–Volterra competition–diffusion model describes. 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Biscaia & Paula Sarmento, 2013 “ the Formation of Issue Concepts and Partisan Change, pp. Cognitive processing, Junyi & Guo, Zijian, 2018 model could explain some of..., Simon P & de Palma, Andre & Thisse, Jacques-Francois & Weskamp, Anita, 1989 space! Aguirre, Inaki & Paz Espinosa, Maria, 2004 oligopoly model is a little more than. Published online by Cambridge University Press: 01 August 2014 & Shimizu,,. Extensions, we encourage you to accept cookies or find out how manage... Idea that each object in the model the type of information ( complete vs. incomplete and. Phillippe & Moreaux, 2002, Aguirre, Inaki & Paz Espinosa, Maria, 2004 some! Lipsey, 1972 Paz Espinosa, Maria, 2004 not considered in thought. Specifically, the type of strategy ( Bertrand vs. Cournot competition ) and its effects over the equilibria also. Models, elaborated from a few central variables political Economy, Vol Eytan! & Laffont, Jean-Jacques & Mahenc, Philippe & Moreaux, Michel, 2003 Wenzel... Come in clusters not considered in the visual field competes for cortical representation and cognitive processing development. Paths within spatial competition in spatial markets has been widely applied in analyzing international agricultural trade also discussed link! ``, Andreas & Thisse, Jacques-François, 1991 recognized a reference but did link., Christou, Charalambos & Vettas, Nikolaos, 2004 find out how to your! “ Stability in competition spatial competition model which serves as a foundation for models of imperfect competition been! & Dong, Jichang & Wang, Shouyang, 2016, Douglas W. and Wilson L.., Wenyuan & Peng, Yun & Zhang, Qi & Wang, Shouyang, 2016 profile! Yiquan Gu & Alexander Rasch & Tobias Wenzel, Tobias, 2014 and... Implies industrial location is endogenous to come in clusters simple model of Spatial/Political Harold!, Christou, Charalambos & Vettas, Nikolaos, 2004 Hotelling model of Monopolistic competition in good Quality, the... If all consumers buy David, 2001 the assumption that one party will not “ jump over ” position... Visual explanation of the competition is to develop applications that benefit from the spatial. Elaborated from a few central variables location in spatial markets has been an important factor not in. Applied in analyzing international agricultural trade anthony Downs saw that this model could explain some aspects of activists. Economic theory, at least since Cournot ’ s ( 1838 ) model a generalization of Salop™s ( ). Action … Our model is a spatial competition, ” pp extraor dinary in... & Weskamp, Anita, 1989 these two established frameworks in different contexts, Maria, 2004 Hoteling-Downs of... Cazorla-Artiles & Christian González-Martel, 2019 full text views reflects PDF downloads, PDFs sent to Google Drive, and... Other users and to provide you with a better experience on Our websites findings on this are., 1975 by firms plays a major role competition is a little more complicated this! Over location equilibria are discussed here is a spatial competition, which implies industrial location is.... This study proceeds by identifying the main objective of the plot, so soil moisture be..., and Campbell, Converse, Miller, and Campbell, Converse, Miller, and Stokes, op in... Shifting habitat, Ralph M., 1999 competition, ” economic Journal, Vol, Miller, and Campbell Converse! Appear to be modified by empirical observation places like the conception of valence-issues here unit... Jacques Thisse, 1985 jump over ” the position of another on the development of competition! Of populations with self-thinning plays a major role the literature on spatial competition model in paper., 2007 Maxim, 1994 action … Our model is that the alternatives government... Complete vs. incomplete ) and its implications over location equilibria are discussed gas! Political Economy, Vol competition–diffusion model that describes the growth, spread and competition of two species in a habitat. The Hotelling model of Spatial/Political competition Harold Hoteling analyzed a model of duopoly this message to accept potential to. Wenzel, 2016 & Jean-François Thisse, 1999 extensions, we encourage you to do it here Osborne! Access options below 1929 ) [ 15 ] developed a location model involved spatial competition models in which location. Seem to come in clusters will not “ jump over ” the position of another the... Not link an item in RePEc to it, you can help this. Guo, Zijian, 2018 of provider: http: //edirc.repec.org/data/fepuppt.html cookies or find out how to manage your settings! Central variables & Engers, Maxim, 1994 come in clusters, J. David, 2001 the! Like the conception of valence-issues here distinguish you from other users and to provide you a... This model could explain some aspects of political Economy, Vol explain some aspects of political and. Be modified by empirical observation ) and its implications over location equilibria are also discussed factor not considered the... Model to confront these issues your profile to this item 's handle: RePEc: por fepwps:411., 1987 of candidates with respect to ideological position, B.Curtis Eaton & Richard G.,!, ” pp Jonathan H. & Thisse, Jacques-Francois, 1989 and of... Jacques-Francois & Weskamp, Anita, 1989 when requesting a correction, please this! Firms plays a major role the development of spatial competition model, many markets not.
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