Spatial competition among multi-store firms

The paper analyzes spatial Cournot competition among multi-store firms. It demonstrates that the complex problem of determining equilibrium store loca tions for competing multi-store firms can be approximated by a simple one, in which each firm behaves as a multi-store monopolist in choosing its stor e locations. A firm's equilibrium store locations often coincide with its m onopoly locations, and in general, converge to its monopoly locations as th e demand grows larger. When the firms have an equal number of stores. the s tores belonging to competing firms agglomerate at discrete points that coin cide with each firm's monopoly store locations. (C) 2002 Elsevier Science B .V. All rights reserved.