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This textbook provides an accessible introduction to spatial competition models in economics. It shows students how to understand and apply spatial models to analysis of market design, structure, competition and pricing.
The book aims to provide a step-by-step guide to learning and implementing spatial modelling. It provides a concise history of the spatial approach and a self-contained primer chapter on the key game theory tools required to undertake spatial analysis. It then provides a comprehensive explanation of the key traditions and models, including the Hotelling model and related Salop circle model, and demonstrates their various applications to consumer, firm and market interactions. Topics covered in the book include: product differentiation, the physical location of firms, spatial price discrimination, oligopolistic competition, non-uniform distributions of consumers, political competition and the basic Downs model, and the application of spatial models to marketing and management. This book will be a valuable resource for undergraduate students in microeconomics and applied economics, particularly on industrial organization courses.
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