Article ID: | iaor19951614 |
Country: | United Kingdom |
Volume: | 2 |
Issue: | 4 |
Start Page Number: | 259 |
End Page Number: | 275 |
Publication Date: | Dec 1994 |
Journal: | Location Science |
Authors: | Chandrasekaran R., Padmanabhan V., Bhadury J. |
Keywords: | competition |
This paper analyzes the problem of two firms competing in a common linear market with demand distributed continuously over the market. The firms wish to maximize their respective profits by appropriate choice of number of facilities and their locations. Equilibrium location strategies are derived for uniform and symmetric triangular demand distributions. It is shown that pioneering advantage may help a firm overcome its cost disadvantage with respect to a competitor.