A NOTE ON EQUILIBRIA IN A CIRCULAR LOCATION MODEL WITH A SINGLE-PEAKED DISTRIBUTION OF CONSUMERS

Kirsten Davis () and Mark Frascatore ()
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Kirsten Davis: General Electric, 1 River Road, Building 53-309P, Schenectady, NY 12345, USA
Mark Frascatore: Faculty of Economics and Financial Studies, Box 5795, Clarkson University, Potsdam, NY 13699, USA

International Game Theory Review (IGTR), 2014, vol. 16, issue 03, 1-9

Abstract: We describe a circular location model in which consumers are distributed according to a symmetric, single-peaked distribution function. Optimal location choices are described and it is determined that equilibria are possible only with one or two firms. Firm strategy is also discussed for greater numbers of firms, and it is shown that even out of equilibrium firms tend to choose locations that are symmetric around the point of highest density, and there can be no agglomeration.

Keywords: Location theory; circular location; agglomeration; L1; L22 (search for similar items in EconPapers)
JEL-codes: B4 C0 C6 C7 D5 D7 M2 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1142/S0219198914500042

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