A hotelling model with differential weights and moving costs

This paper examines a competitive spatial model on a linear market. The two competing facilities are assumed to have different weights. Based on gravitational-type attraction function, the market areas of the two facilities are determined. Assuming individual optimization and allowing sequential relocations, it is shown that no locational Nash equilibrium exists. Then fixed and variable relocation costs are introduced. Necessary and sufficient conditions for both types of relocation costs are derived which guarantee that a stable equilibrium is reached.