LOCATION, LOCATION, LOCATION

We analyze the canonical location-then-price duopoly game with general log concave consumer densities. A unique pure-strategy equilibrium to the two-stage game exists if the density is not ''too asymmetric'' an d not ''too concave.'' These criteria are satisfied by many commonly u sed densities. Equilibrium locations are closer, and prices lower, the tighter the density. Our results apply also to a vertical differentia tion specification. Symmetric densities that are ''too concave'' have no symmetric equilibrium, although asymmetric ones may exist. Finally, product differentiation is always excessive. Under symmetry the equil ibrium dispersion lies between 3/2 and 3 times the optimum dispersion. (C) 1997 Academic Press.