WELFARE CONSEQUENCES OF SPATIAL COMPETITION: A NOTE

摘要: Treble is correct when he states that the integral representing consumer surplus "is increasing in D(," where Do stands for market radius firm. But incorrect his speculation CV solution under L6schian competition according/v yields an increasingly smaller aggregate. Note decreasing with created by each one of individual firms which are number free entrv. The aggregate therefore not necessarily greater spatial monopoly than it conditions competition. In fact, can readily be shown to increased, decreased, entry model. To prove our contention consider average a la W. Holahan [3] given below evaluating Treble's S [4, p. 1328] and turn dividing both sides resulting equation Do: