Pontes, José Pedro2010-12-102010-12-102005Pontes, José Pedro. (2005). "Input specificity and location". Instituto Superior de Economia e Gestão - DE Working papers nº 1-2005/DE/UECE0874-4548http://hdl.handle.net/10400.5/2660In a two-region economy, two upstream firms supply an input to two consumer goods firms. For two different location patterns (site specificity and co-location of the suppliers), the firms play a three-stage game: the input suppliers select transport rates; then they choose outputs; finally the buyers select quantities of the consumer good. It is concluded that thesitespecificity of the input leads to a high transport cost and to its specialized adaptation to the needs of the local user.engTechnological ChoiceSpatial OligopolyVertically-linked Industriesworking paper