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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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  • A Okabe & A Suzuki, 1987. "Stability of spatial competition for a large number of firms on a bounded two-dimensional space," Environment and Planning A, Pion Ltd, London, vol. 19(8), pages 1067-1082, August.
  • Handle: RePEc:pio:envira:v:19:y:1987:i:8:p:1067-1082
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    Cited by:

    1. 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.
    2. Drezner, Zvi & Wesolowsky, George O., 1996. "Location-allocation on a line with demand-dependent costs," European Journal of Operational Research, Elsevier, vol. 90(3), pages 444-450, May.
    3. Abellanas, Manuel & Lillo, Isabel & Lopez, M Dolores & Rodrigo, Javier, 2006. "Electoral strategies in a dynamical democratic system. Geometric models," European Journal of Operational Research, Elsevier, vol. 175(2), pages 870-878, December.
    4. Gunhak Lee & Morton E. O'Kelly, 2009. "Exploring Locational Equilibria In A Competitive Broadband Access Market: Theoretical Modeling Approach," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 953-975.
    5. Atsuyuki Okabe, 2009. "Preface," Journal of Geographical Systems, Springer, vol. 11(2), pages 107-112, June.
    6. Zvi Drezner & Alfonsas Misevičius & Gintaras Palubeckis, 2015. "Exact algorithms for the solution of the grey pattern quadratic assignment problem," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 82(1), pages 85-105, August.
    7. Suzuki, Atsuo & Drezner, Zvi, 2009. "The minimum equitable radius location problem with continuous demand," European Journal of Operational Research, Elsevier, vol. 195(1), pages 17-30, May.

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