Market structure and industry location in a footloose capital model

Comparison among Cournot, Bertrand and monopolistic competition receives recent atten-tion in industrial organization, but not in New Economic Geography. To fulfill this gap, we examine how the difference in market structures affects industry location in a footloose capital model. We find that the home market effect is strongest in Cournot competition, second strongest in Bertrand competition, and weakest in monopolistic competition. And, we link the insights in industrial organization with our model of geography.& COPY; 2022 University of Venice. Published by Elsevier Ltd. All rights reserved.