摘要
We study the location choices by Cournot oligopolists in a circular market, where consumers are located uniformly along the circumference. We analyze the subgame perfect Nash equilibria (SPNE) of a two-stage location-quantity game. We demonstrate that the equidistant location pattern is only one of the many equilibrium location patterns that arise in a circular market. Nonequidistant, multiple or a continuum of location equilibria may also arise. Both spatial agglomeration and dispersion, or a combination of agglomeration and dispersion may occur in equilibrium. In the case of infinitely many location equilibria, we establish the welfare equivalence of the equilibrium location patterns. © 2004 Elsevier B.V. All rights reserved.