A Model of Sequential Location Among Foresighted Firms in Non-Uniform Density Markets

Abstract

Startups vie for strategic positions in densely populated cities by paying high prices for rent, since the customer base they can establish is larger compared to suburban areas. For this paper, firms locate sequentially basing their decisions on correct expectations as to how their competitors locate and market-players face a non-uniform density function of customers. The solution is obtained using backward induction. Three types of market structures will be considered in this paper: duopoly, oligopoly, and perfect competition. The nature of these equilibriums differs from conventional papers in that firms face a uniform density of customers.

Access full PDF: A Model of Sequential Location Among Foresighted Firms in Non-Uniform Density Markets
JYI is always looking for motivated undergraduate students to join our team. We also are looking for faculty members and professional science writers to serve as mentors for undergraduates.
Follow Us
For all the latest news from JYI, join our Facebook.
For all the latest news from JYI, join our Youtube.
For all the latest news from JYI, join our twitter.
For all the latest news from JYI, join our email list.
Translate