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

  • A Okabe
  • A Suzuki

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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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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