We analyze free-entry equilibrium in a model of spatial competition in which locations of established firms are fixed and entrants' profit expectations are rational. Our most interesting results concern large economies -- economies in which the number of firms is arbitrarily large. When the...

This article sets out a theory of market structure with sequential entry. We characterize the perfect Nash equilibrium to the entry game in several propositions. First, equilibria never involve excess capacity. Second, a sufficient statistic for the entry of any firm is that its profits are...