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A Note On Equilibria In A Circular Location Model With A Single-Peaked Distribution Of Consumers

Author

Listed:
  • KIRSTEN DAVIS

    (General Electric, 1 River Road, Building 53-309P, Schenectady, NY 12345, USA)

  • MARK FRASCATORE

    (Faculty of Economics and Financial Studies, Box 5795, Clarkson University, Potsdam, NY 13699, USA)

Abstract

We describe a circular location model in which consumers are distributed according to a symmetric, single-peaked distribution function. Optimal location choices are described and it is determined that equilibria are possible only with one or two firms. Firm strategy is also discussed for greater numbers of firms, and it is shown that even out of equilibrium firms tend to choose locations that are symmetric around the point of highest density, and there can be no agglomeration.

Suggested Citation

  • Kirsten Davis & Mark Frascatore, 2014. "A Note On Equilibria In A Circular Location Model With A Single-Peaked Distribution Of Consumers," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-9.
    • Handle: RePEc:wsi:igtrxx:v:16:y:2014:i:03:n:s0219198914500042
    DOI: 10.1142/S0219198914500042
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    References listed on IDEAS

    as
    1. Toshihiro Matsumura & Daisuke Shimizu, 2006. "Cournot and Bertrand in shipping models with circular markets," Papers in Regional Science, Wiley Blackwell, vol. 85(4), pages 585-598, November.
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    More about this item

    Keywords

    Location theory; circular location; agglomeration; L1; L22;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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