We extend the well-known spatial competition model (d'Aspremont et al., 1979) to a continuous time model in which two firms compete in each instance. Our focus is on the entry timing decisions of firms and their optimal locations. We demonstrate that the leader has an incentive to locate closer...

We investigate the entry timing and location decisions under market-size uncertainty with Brownian motions in a continuous-time spatial competition duopoly model a la d'Aspremont et al. (1979). Under a sequential equilibrium, the threshold of the follower non-monotonically increases in...

We investigate the decision of entry timing and product positions under market size uncertainty with Brownian motion for continuous-time spatial duopoly competition. We show the following results. First, the leader is more likely to increase the degree of product differentiation as volatility...