This paper extends the traditional Hotelling's model of spatial competition by allowing firms to choose the degree of general purposeness of their products before they compete in prices. The degree of general purposeness is approximated by endogenizing the per-unit transportation cost...

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...