Abstract
This paper describes the spatial distribution of customer demand, supply of customer services and facility investment, as the outcome of a three-level game-like interaction between customers (e.g., shoppers), suppliers (e.g., retailers) and developers (e.g., landlords). Treating both the suppliers and developers at each centre as competitors, oligopolistic equilibria of the Nash-Stackelberg type are developed, and conditions for their existence and uniqueness established. Uncertain customer demand is specified in probabilistic terms, representing the suppliers' perception of expected customer behaviour.
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Roy, J., Johansson, B. & Leonardi, G. Some spatial equilibria in facility investment under uncertain demand. Papers of the Regional Science Association 56, 215–228 (1985). https://doi.org/10.1007/BF01887914
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DOI: https://doi.org/10.1007/BF01887914