In this chapter, we illustrate some classic spatial models. We provide a collection of the principal classic spatial models, by illustrating their characteristics and their main results. In particular, we discuss the Hotelling linear market and the Salop circular market, both under uniform...

This chapter reviews the literature on spatial Cournot competition with endogenous firms' locations in the past 30 years, which started from Hamilton et al. (Spatial Discrimination: Bertrand vs. Cournot in a Model of Location Choice. Regional Science and Urban Economics, 19, 87–102, 1989) and...

This paper picks up from a literature and bibliometric review published in Papers in Regional Science (Biscaia and Mota, Models of Spatial Competition: A Critical Review. Papers in Regional Science, 9 (4), 851–871, 2013) and extends it for the most recent years. Our main goal is the analysis...

This chapter provides a comprehensive view on the field of New Economic Geography (NEG). It starts by describing the background in adjacent fields of economics which made the surge of NEG possible. It lays out the necessary ingredients and fundamental forces at work that define any NEG framework...

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...

The "spokes model" takes the name from its graphical visualisation that resembles the spokes of a bike's wheel. It describes a market as a collection of spokes, joining at a common centre, where consumers are located. Firms may be situated at the extreme of these spokes, at the interior of the...

We survey the main theoretical contributions on patent licensing in spatial models of competition. Building on both the shopping models à la Hotelling and the shipping models of spatial discrimination, our analysis focuses on how the spatial dimension of competition drives the choice of the...

In modern cities firms must observe local zoning regulations in regard to their locations. In this chapter we first review the literature on the economic effects of legal restrictions on firms' locations in a linear city. A common assumption in research on zoning is that firms maximize their own...

The chapter considers the introduction of a mixed ownership firm into a classic model in which downstream firms locate strategically so as to achieve accommodating upstream price reductions. These reductions happen endogenously but the strategic locations harm welfare. It shows that a mixed...

A dynamic Hotelling monopoly model is proposed, with the purpose of characterising the effects of informative and persuasive advertising in a regime of partial market coverage. The two models are solved to show the emergence of a unique saddle-point steady-state equilibrium in both cases. Then,...