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A Stackelberg Equilibrium for a Location Game between a Large-Scale Firm and a Small-Scale Firm in Linear Market
线性市场上不同规模两公司选址博弈问题的Stackelberg 平衡

Keywords: location game,hotelling model,stackelberg equilibrium
选址博弈
,Hotelling模型,Stackbelberg平衡

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Abstract:

This paper presents a location game between a large firm and a small firm in a linear market.Firstly,the model of location game between different-scale 2-firms is set up by adapting the assumption of cost function in Hotelling model.Secondly,the competitive system is introduced,in which one store belongs to a large firm and the others belong to a small firm.Thirdly,the stackelberg equillibrium of this system,the large firm's store is located in the center of market and the small firm gathers its stores at the ends of market symmetrically,is solved as the solution of new model.Finally,several strategic decisions of a small firm which games with a large firm are given under the Stackelberg equilibrium.

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