Endogenous firm location is analyzed in a discrete two-region-two-firm model of product differentiation. In a non-cooperative game, two regional governments first decide on the imposition (or lifting) of domestic production standards; firms then choose technology (clean or polluting), location...

Location games offer simple and parsimonious frameworks for analyzing a host of issues from political competition to product positioning and business strategy. In this chapter, we review existing approaches to modeling spatial competition using location games and benefits, as well as challenges...