Asymmetries in competitive location models on the line

Abstract

This paper first presents a standard competitive duopoly location model on a linear market and derives an equilibrium solution as well as a solution for the sequential von Stackelberg game. The heart of the contribution then investigates scenarios, in which the duopolists face or follow asymmetric situations or strategies. In particular, we examine situations, in which the duopolists have different objectives, models, in which firms apply different pricing policies, and instances, in which the competitors have different capabilities.