Location-Spatial Interaction Models: 2. Competition between Independent Firms

H C W L Williams and K S Kim

Environment and Planning A, 1990, vol. 22, issue 9, 1155-1168

Abstract: The sizes and locations of an arbitrary number of retail stores in oligopolistic competition are sought through a representation and solution of an N -centre profit-maximizing model. The Nash-Cournot equilibrium states, which correspond to this competitive configuration are determined under variation in the number of stores and the parameters which govern spatial behaviour of consumers. This allows a comparison to be made of configurations generated by competitive processes with those which maximize consumer benefits. The relationship between profits and store numbers is explored theoretically and numerically.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:22:y:1990:i:9:p:1155-1168

DOI: 10.1068/a221155

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