Spatial Competition in Variety and Number of Stores

We propose location-then-variety competition for a multi-product and multi-store oligopoly, in which the number of firms, the number of stores and their location, and the number of varieties are endogenously determined. We show that as compared to price-then-variety and quantity-then-variety competition, location-then-variety competition with multi-stores yields a much richer set of equilibrium outcomes, such as market segmentation, interlacing, sandwich and enclosure.