Studies in Regional Science
Online ISSN : 1880-6465
Print ISSN : 0287-6256
ISSN-L : 0287-6256
An Introductory Note on the Locational Competition of Firms in a Bounded Two-Dimensional Market
The Possibilities of Equilibrium under Uniform Pricing
Masaki AOYAGI
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1988 Volume 19 Pages 1-18

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Abstract

This note reformulates the model of “icecream-venders' competition” in a bounded two-dimensional market. Under the behavioral assumptions of (i) identical price setting, (ii) myopic profit maximization, and (iii) free relocation, I show several possibilities of spatial equilibrium. Moreover, through the computer-simulating analyses, I illustrate that the equilibrium configurations of firms are substantially affected by (i) the shape of the two-dimensional market and (ii) the number of firms. The implications of thus derived equilibria are also discussed.

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© The Japan Section of the Regional Science Association International
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