Publication Type
Journal Article
Version
publishedVersion
Publication Date
7-2015
Abstract
We derive the closed-form solution characterizing the equilibrium in a circular-city model with competing firms of heterogeneous production costs. Tractability issues in this setting are well known and have not been resolved in prior work. In this paper, the equilibrium solution illustrates effects of production costs on firms’ strategic decisions, their aggregate profit, and consumer surplus.
Keywords
Circular-city model, cost heterogeneity, game theory
Discipline
Computer Sciences | Management Information Systems
Research Areas
Information Systems and Management
Publication
Operations Research Letters
Volume
43
Issue
4
First Page
401
Last Page
404
ISSN
0167-6377
Identifier
10.1016/j.orl.2015.04.010
Publisher
Elsevier
Citation
LIN, Mei and WU, Ruhai.
Production Cost Heterogeneity in a Circular-City Model. (2015). Operations Research Letters. 43, (4), 401-404.
Available at: https://ink.library.smu.edu.sg/sis_research/1962
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://dx.doi.org/10.1016/j.orl.2015.04.010