Location in a Disk City with Consumer Concentration Around the Center

Manfred Stadler

Schmalenbach Business Review, 2019, vol. 71, issue 1, No 4, 35-50

Abstract: Abstract The paper studies a two-stage location-price duopoly game in a disk city with consumer concentration around the city center. When consumers are uniformly distributed over the plane, unconstrained firms locate outside of the city. Consumer concentration, however, induces firms to locate nearer to each other and, when the degree of concentration is sufficiently high, inside of the city. Prices and firm profits decrease in the degree of consumer concentration. We explicitly solve the model for classes of cone-shaped, dome-shaped, and bell-shaped consumer densities. In all cases we identify a loss of welfare due to the strategic effect which causes the firms’ spatial differentiation being too large.

Keywords: Location strategies; Disk city; Concentration of consumer demand (search for similar items in EconPapers)
JEL-codes: C72 L13 R32 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s41464-018-0064-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Location in a disk city with consumer concentration around the center (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:schmbr:v:71:y:2019:i:1:d:10.1007_s41464-018-0064-0

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/41464

DOI: 10.1007/s41464-018-0064-0

Access Statistics for this article

Schmalenbach Business Review is currently edited by Alfred Wagenhofer

More articles in Schmalenbach Business Review from Springer, Schmalenbach-Gesellschaft
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().