Larralde, Hernn; Stehl, Juliette; Jensen, Pablo - In: Regional Science and Urban Economics 39 (2009) 3, pp. 343-349
We present an analytical solution to the two-dimensional two-stage Hotelling model with quadratic transportation costs. We assume that consumers' choice is tempered by a logit function, which characterizes consumers' heterogeneity. As in the one-dimensional case, stores aggregate spatially when...