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Location-Spatial Interaction Models: 2. Competition between Independent Firms

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  • H C W L Williams
  • K S Kim

Abstract

The sizes and locations of an arbitrary number of retail stores in oligopolistic competition are sought through a representation and solution of an N -centre profit-maximizing model. The Nash-Cournot equilibrium states, which correspond to this competitive configuration are determined under variation in the number of stores and the parameters which govern spatial behaviour of consumers. This allows a comparison to be made of configurations generated by competitive processes with those which maximize consumer benefits. The relationship between profits and store numbers is explored theoretically and numerically.

Suggested Citation

  • H C W L Williams & K S Kim, 1990. "Location-Spatial Interaction Models: 2. Competition between Independent Firms," Environment and Planning A, , vol. 22(9), pages 1155-1168, September.
    • Handle: RePEc:sae:envira:v:22:y:1990:i:9:p:1155-1168
    DOI: 10.1068/a221155
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    Cited by:

    1. Blas Pelegrín & Pascual Fernández & María Dolores García Pérez, 2016. "Profit maximization and reduction of the cannibalization effect in chain expansion," Annals of Operations Research, Springer, vol. 246(1), pages 57-75, November.
    2. Rafael Suárez‐Vega & Dolores R. Santos‐Peñate & Pablo Dorta‐González, 2007. "The follower location problem with attraction thresholds," Papers in Regional Science, Wiley Blackwell, vol. 86(1), pages 123-137, March.
    3. Marta Grossmanová & Pavol Kita & Marta Žambochová, 2016. "Segmentation of Consumers in the Context of their Space Behaviour: Case Study of Bratislava," Prague Economic Papers, Prague University of Economics and Business, vol. 2016(2), pages 189-202.
    4. Abellanas, Manuel & López, M Dolores & Rodrigo, Javier, 2010. "Searching for equilibrium positions in a game of political competition with restrictions," European Journal of Operational Research, Elsevier, vol. 201(3), pages 892-896, March.
    5. Noltemeier, H. & Spoerhase, J. & Wirth, H.-C., 2007. "Multiple voting location and single voting location on trees," European Journal of Operational Research, Elsevier, vol. 181(2), pages 654-667, September.

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