Abstract
This chapter extends analyses presented in the previous chapter for service markets in monopoly to service markets in forms of quantitative and qualitative competition among multiple firms. Analyses in the previous chapter are extended through the application of the user equilibrium approach for competitive service markets, a more generalized version of the same approach for service markets in monopoly. This user equilibrium approach for competitive markets fundamentally differs from existing approaches for congestion-free firms in two respects.
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Notes
- 1.
The sub-differential of a concave function \( f \) at a point \( x \) refers to the set of \( \hat{x} \) such that \( f(z) \le f(x) + \langle \hat{x},z - x\rangle \), for all \( z \), where \( \langle \;a,b \rangle \) denotes the inner product of \( a \) and \( b \) (Rockafellar 1970).
References
Berge C (1963) Topological spaces, (trans: Patterson EM). The Macmillan Company, New York
Rockafellar RT (1970) Convex analysis. Princeton University Press, Princeton
Sweezy PM (1939) Demand under condition of oligopoly. J Polit Econ 47:568–573
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© 2011 Springer-Verlag Berlin Heidelberg
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Moon, DJ. (2011). The Equilibrium of Competitive Service Markets. In: Congestion-Prone Services Under Quality Competition. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-20189-9_9
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DOI: https://doi.org/10.1007/978-3-642-20189-9_9
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Print ISBN: 978-3-642-20188-2
Online ISBN: 978-3-642-20189-9
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