SPATIAL COMPETITION WITH CONSISTENT CONJECTURES*

ABSTRACT Equilibrium in spatial models invariably depends on firms' conjectures about how competitors will react to their price changes. This paper analyzes spatial price and location equilibrium when firms hold consistent (i.e. correct) conjectures. Most spatial models assume an exogenous conjecture. Consistent conjectures are one method, albeit a controversial one, for endogenizing the conjecture. We show that the consistent conjecture about a competitor's reaction to a price change in the simplest case is 1/3. When demand is elastic the consistent conjecture is a decreasing function of the radius. It is always below 1/3 and can be negative. In the third model, we show that the consistent conjecture declines as the number of dimensions and the number of competitors increases.     

Multi-method (TL and OSL), multi-material (quartz and flint) dating of the Mousterian site of Roc de Marsal (Dordogne,France): correlating Neanderthal occupations with the climatic variability of MIS 5–3

Roc de Marsal has yielded numerous remains of Mousterian occupations, including lithics, fauna and combustion features. It was made famous by the discovery of the skeleton of a Neanderthal child. Given the need to date the sequence, TL and OSL were applied on heated flints and quartz, and OSL on unheated quartz. Chronological results combined with palaeoenvironmental data – faunal remains and micromorphological features in the sediments from the cave, pollen proxies and faunal remains from the region – allowed us to place climate variations in southwest France on a numerical time scale. Denticulate Mousterian occupations were dated to the middle of MIS 4 (65–70 ka) and Quina layers either to the very end of MIS 4 or to MIS 3. Interestingly, a faunal pattern showing a mix of red deer, roe deer and reindeer was found to have occurred during MIS 4, which was shown to be consistent with data from other similar sites in southwest France.