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Pure Spatial Competition among Firms with more than one Facility

  • Horst Behnke
Conference paper

Abstract

Since Rotelling’s (1929) famous paper about the competition between two firms on a linear market with equal amount of demand on every point of the line, (where its single Nash equilibrium is given in locating both firms at the midpoint of the line), the model of pure spatial competition has been extended and modificated in many different ways. The main contributions in context to this paper since Rotelling are the following two: Selten (1971) had given the necessary and sufficient conditions for Nash equilibria in the standard Rotelling model extended to n firms. Eaton and Lipsey (1975) had further extended the model to various amounts of demand on the line (beside other variations). In this paper the pure spatial competion model will be analysed for a given number of firms, which each have to locate a given (individual different) number of facilities on the linear market.

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References

  1. Behnke, H. (1990): “Gleichgewicht im Wettbewerb durch Standortwahl auf StraBennetzen”, Doctoral Dissertation at: Universitat der Freien und Hansestadt HamburgGoogle Scholar
  2. Eaton, B.C. / Lipsey, R.G. (1975): “The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition”, Review of Economic Studies 42, 27–49CrossRefGoogle Scholar
  3. Hotelling, H. (1929): “Stability in Competition”, Economic Journal 39, 41–57CrossRefGoogle Scholar
  4. Selten, R. (1971): “Anwendungen der Spieltheorie auf die politische Wissenschaft”, in: Maier, H. / Ritter, K. / Matz, U. (Ed.): Politik und Wissenschaft, München, 287–320.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1993

Authors and Affiliations

  • Horst Behnke
    • 1
  1. 1.Sozialökonomisches SeminarUniversität der Freien und Hansestadt HamburgHamburg 13Germany

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