Back to Gallery

Retail Location Competition

Hotelling Spatial Model with Price & Location Dynamics

Market Setup

4
200

Competition Parameters

1.0
$10
0.50

Firm Behavior

0.05
0.10

Scenarios

Hotelling's Model

Firms compete on location and price. Customers choose the store minimizing:

Price + (Distance × Transport Cost)

Watch for minimum differentiation (clustering) vs maximum differentiation (spreading out)!

Round
0
Avg Price
$0
Clustering
0%
Market HHI
0

Market Analysis

Run the simulation to observe spatial competition dynamics...