چکیده:
One of the main criticisms of location models is simplistic assumptions concerning the consumers’ distribution on the street or city. The location models usually make use of uniform distribution of consumers while it is not true in reality, and mostly the consumers’ accumulation is more in the city centers rather than suburb areas. This study deals with selection of optimal location of firms using Lijesen and Reggiani (2013) spoke model and changing the consumers’ distribution from uniform to triangular in a two-step game. In this game, the firms select their location, at the first stage, and enter the price competition at the second stage. Results indicate that the increased number of streets and transportation costs leads to price increase and this indicates that the farther away are the firms from each other, their competition in the market would decrease and the price would increase. If both firms are located in the same distance from city center, they would gain the same market share and more inclined toward being closer to city center or having minimum distance. Moreover, when in the consistency issue include the triangular distribution, Nash equilibrium price is less compared with Rohlfs model (1971) and a greater range of consumers purchase the product.
خلاصه ماشینی:
Expansion of Location Theories of Firms and Products’ Consistency Using Triangular Distribution Approach Kiumars Shahbazi*1, Salah Salimian2 Received: 2015, April 20 Accepted: 2017, January 18 Abstract ne of the main criticisms of location models is simplisticassumptions concerning the consumers’ distribution on the street or city.
This study deals with selection of optimal location of firms using Lijesen andReggiani (2013) spoke model and changing the consumers’ distributionfrom uniform to triangular in a two-step game.
Moreover, when in the consistency issue include the triangular distribution, Nash equilibrium price is less compared with Rohlfs model (1971) and a greater range of consumers purchase the product.
location, which its selection results in decreasing competition between firms, increasing product differentiation and minimizing distribution cost of goods and services to customers, plays a significant role in increasing market share and firms’ profit.
They showed that the entrance of new enterprise changes the consumer surplus and social welfare through price, market development and their resultant and the free entrance of firms, the total production of market might be less or more compared to social optimum, and the equilibrium price is more than marginal cost even when the number of firms is higher.
In the Hotelling linear city model, where the consumers had been uniformly distributed, the results were obtained as follow: ̂ = 2 − 1 + − 2 + 1 , − ̂ = 1 − 2 + + 2 − 1 2 2 2 2 Comparing the results shows that the parameter of transportation costs has greater effect on the demand of firms in triangular distribution approach compared to uniform distribution.