要 旨
Using Hotelling type product differentiation
model, we investigate the relation between downstream firms' strategies
of product differentiation and upstream firms' production technology.
We assume that each upstream firm symmetrically locates in the linear
city. Given that the upstream firms' transportation costs per unit
are large, the larger the transportation costs per length, the weaker
the level of the downstream firms' product differentiation.
In a equilibrium outcome, the closer each upstream firm locates, the
further each downstream firm locates.
(2002.09.18)
