ASYMMETRIC EQUILIBRIA IN SPATIAL COMPETITION

The main purpose of this paper is to study the impact of consumer conc entration around the market center on the equilibrium locations of loc ation-price games. In the case of symmetric triangular density, it is shown that no symmetric equilibrium exists. However, we demonstrate th e existence of asymmetric equilibria in pure strategies; these equilib ria are also characterized. Our secondary purpose is to study the sequ ential entry of two firms when the location space is not restricted to the market space. This leads us to uncover a substantial first-mover advantage, which has been neglected in the literature.