A NOTE ON EQUILIBRIA IN A CIRCULAR LOCATION MODEL WITH A SINGLE-PEAKED DISTRIBUTION OF CONSUMERS

We describe a circular location model in which consumers are distributed according to a symmetric, single-peaked distribution function. Optimal location choices are described and it is determined that equilibria are possible only with one or two firms. Firm strategy is also discussed for greater numbers of firms, and it is shown that even out of equilibrium firms tend to choose locations that are symmetric around the point of highest density, and there can be no agglomeration.