An Analysis of Welfare in Spatial Competitive Equilibria

DOI Web Site

Bibliographic Information

Other Title
  • 空間的競争均衡の厚生分析
  • クウカンテキ キョウソウ キンコウ ノ コウセイ ブンセキ

Search this article

Description

This paper contributes to spatial equilibrium analysis in two major ways. Firstly, the Loschian and the Greenhut-Ohta equilibrium solutions correspond to points on Hoover's frontier price curve. From this correspondence it is illustrated that the Loschian equilibrium solution results in the smallest market area, and Greenhut-Ohta solution provides the lowest frontier price. The paper's second contribution is the development of an assessment of the Loschian and Greenhut-Ohta solutions. From the point of view of consumers' welfare, Greenhut-Ohta equilibirum solution is found to be superior to the Loschian solution. But, the optimal spatial competitive equilibrium is not either Greenhut-Ohta or Loschian. The equilibrium that produces the largest social surplus, the optimal equilibrium, lies in between the equilibria for the Loschian and Greenhut-Ohta.

Journal

Keywords

Details 詳細情報について

Report a problem

Back to top