This paper discusses how the relaxation of the full market saturation assumption with different size companies and under-supplied market influences equilibria in one- and two-dimensional localization games. Game-theory solutions were examined with experiments on localization decisions depending on size of companies. Experimental approach confirms this relationship exists and highlights the inverse relation between companies’ size and their mutual distance in equilibrium. Relaxation of assumptions allows the Principle of Minimum and Maximum Differentiation to be borderline cases in localization models. Big companies choose central location (Principal of Minimum Product Differentiation), when small enterprises sprawl to avoid competition (Principal of Maximum Product Differentiation)

1. FULLTEXT: Company size and spatial localization - game theory and experimental approach, PDF document, version 1.3, 0.3MB

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