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Equilibrium locations in a spatial model with sequential entry in real time

By Luca Lambertini


I describe the entry process in a spatial market over an in…nite time horizon. I show that, as long as the strategy space at the location stage is unbounded, the results derived from the single-period Stackelberg model of entry coincide with those obtained in the in…nite horizon model. On the contrary, if the strategy space is bounded, then the later the follower enters, the closer to the center of the market the leader locates at the initial date

Topics: JEL Classi…cation, L13, O31 Keywords, location leadership, entry, time Acknowledgments. I thank Raimondello Orsini and Carlo Scarpa for useful comments
Year: 2002
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