LOCATION EQUILIBRIUM FOR COURNOT OLIGOPOLY IN SPATIALLY SEPARATED MARKETS

Consider a two-stage non-cooperative Cournot game with location choice involving n greater than or equal to 2 firms each with several facili ties. There are m greater than or equal to 2 spatially separated marke ts constituting the vertices of a network. Each firm first selects the locations of their facilities and then selects the quantities to supp ly to the markets to maximize its profit. There exists a Nash equilibr ium in the quantities offered by each firm at the markets. Furthermore , when the demand in each market is sufficiently large, each firm choo ses to locate its facilities only at vertices. With linear demand in e ach market, there exists a Nash location equilibrium.