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Large Spatial Competition

In: Spatial Interaction Models

Author

Listed:
  • Matías Núñez

    (Université Paris Dauphine)

  • Marco Scarsini

    (LUISS)

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 (1) randomness in the number of retailers and (2) different ability of the retailers to attract consumers.

Suggested Citation

  • Matías Núñez & Marco Scarsini, 2017. "Large Spatial Competition," Springer Optimization and Its Applications, in: Lina Mallozzi & Egidio D'Amato & Panos M. Pardalos (ed.), Spatial Interaction Models, pages 225-246, Springer.
    • Handle: RePEc:spr:spochp:978-3-319-52654-6_10
    DOI: 10.1007/978-3-319-52654-6_10
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    Cited by:

    1. Gaëtan Fournier, 2019. "General distribution of consumers in pure Hotelling games," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(1), pages 33-59, March.
    2. Hans Peters & Marc Schröder & Dries Vermeulen, 2018. "Hotelling’s location model with negative network externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(3), pages 811-837, September.
    3. Tarbush, Bassel, 2018. "Hotelling competition and the gamma distribution," Games and Economic Behavior, Elsevier, vol. 111(C), pages 222-240.

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