Agent-based modeling and simulation for two-dimensional spatial competition

Abstract

We examine a feasibility study on agent-based modeling and simulation for spatial competition originating from Hotelling model. Hotelling model is a theory that explains the consequence of the spatial competition between two shops. This model is employed to explain little product differentiation and agglomeration of retail shops. Conventionally, the researches for spatial competition has employed the analytical approaches in the game situations. On the contrary, our research intends to introduce the agent-based approach. With the agent-based approach, we can deal with discrete and non-uniform consumer distributions which are closer to the actual situation. This paper introduces our agent-based model as extension of two-dimensional Hotelling model and the agent simulator which we’ve developed as a prototype.