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Large Spatial Competition

Author

Listed:
  • Matias Nunez

    (LAMSADE - Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)

  • Marco Scarsini

    (Dipartimento di Economia e Finanza - LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma])

Abstract

We consider spatial competition when consumers are arbitrarily distributed on a compact metric space. Retailers can choose one of finitely many locations in this space. We focus on symmetric mixed equilibria which exist for any number of retailers. We prove that the distribution of retailers tends to agree with the distribution of the consumers when the number of competitors is large enough. The results are shown to be robust to the introduction of (i) randomness in the number of retailers and (ii) different ability of the retailers to attract consumers.

Suggested Citation

  • Matias Nunez & Marco Scarsini, 2017. "Large Spatial Competition," Post-Print hal-01512621, HAL.
  • Handle: RePEc:hal:journl:hal-01512621
    DOI: 10.1007/978-3-319-52654-6_10
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01512621
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    Keywords

    Location; Equilibrium; Hotelling games; Large games; Poisson games; Valence;

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