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Stability of spatial competition for a large number of firms on a bounded two-dimensional space

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  • A Okabe
  • A Suzuki

Abstract

In this paper Hotelling's model of spatial competition is extended to a two-dimensional space, and it is shown that if the number of firms is very large, the configuration of the firms is stable in the inner area of a square region; this configuration is fairly similar to a socially optimal configuration. These results are almost contrary to Eaton and Lipsey's conjecture, and they are in marked contrast to the results of the one-dimensional model.

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Bibliographic Info

Article provided by Pion Ltd, London in its journal Environment and Planning A.

Volume (Year): 19 (1987)
Issue (Month): 8 (August)
Pages: 1067-1082

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Handle: RePEc:pio:envira:v:19:y:1987:i:8:p:1067-1082

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Cited by:
  1. Drezner, Zvi & Wesolowsky, George O., 1996. "Location-allocation on a line with demand-dependent costs," European Journal of Operational Research, Elsevier, Elsevier, vol. 90(3), pages 444-450, May.
  2. Huck, Steffen & Knoblauch, Vicki & Muller, Wieland, 2003. "On the profitability of collusion in location games," Journal of Urban Economics, Elsevier, vol. 54(3), pages 499-510, November.
  3. Eiselt, H. A. & Laporte, Gilbert, 1997. "Sequential location problems," European Journal of Operational Research, Elsevier, Elsevier, vol. 96(2), pages 217-231, January.
  4. Suzuki, Atsuo & Drezner, Zvi, 2009. "The minimum equitable radius location problem with continuous demand," European Journal of Operational Research, Elsevier, Elsevier, vol. 195(1), pages 17-30, May.
  5. Atsuyuki Okabe, 2009. "Preface," Journal of Geographical Systems, Springer, Springer, vol. 11(2), pages 107-112, June.

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