The multi-store location and pricing decisions of a spatial monopoly

Most previous discussion on spatial economics has one common feature which is restrictive and unrealistic: it was assumed that the firm in question can choose only one store site. In this paper we propose a new model of monopoly spatial decisions, and a new approach to solve the problem. We analyze a monopolist's optimal decision about the number and location of the stores he wants to establish along the geographic line and, if there is more than one store on the line, the optimal mill prices charged by these stores. (C) 1998 Elsevier Science B.V.