Cournot competition in spatial markets: a complementary result on complementarity

We study location equilibria for a symmetrical two-store duopoly selling differentiated products on the circle market. In contrast to the existing literature, we assume that each store sells a different product. We consider both complementarity among all varieties on the market and intra-firm complementarity but substitutability between rival varieties, and obtain multiple equilibria in each case. We thus remind that the assumptions on intra-firm as well as on inter-firm competition may be relevant for determining the equilibrium pattern in a spatial model with location choice and various types of product differentiation.