A Extended Hotelling Model Of Game Location

Nowadays the competition between enterprises is becoming increasingly fierce and the forms of competition is varied and complex. Especially, the location problem is directly related to the enterprises in market share, transportation cost and competitiveness, etc. In a certain extent location determines the enterprise's fate, which strategic significance is self-evident.According to consider whether competitors location can be divided into decision-making site and the countermeasures location. In the current studies more researchers choose Hotelling price competition model as an archetype model. Variable concretized or modify the constraint conditions, various strategy game, choice to maximize the objective function of strategy combinations, maximize exploiting market and profit space. This paper improved classic Hotelling model, introducing product satisfaction factor established a price competition Hotelling model based on the satisfaction. The advantages of the improved model are in these areas:1. Extend the classical Hotelling model.The satisfaction factor has manifested consumer to product requirements, but affect the location in the original model is no consideration.2. Considering the influence of alternative, as a comprehensive enterprise we choose commercial strategy combinations provides strong basis.Research results show that satisfaction factor and the product to the position of alternative competitive enterprise affects obviously in different satisfaction and product under the location of alternative strategies are quite different.Based on this second purchasing behavior of consumer price location game model:1. First analyze the strategy equilibrium based on different satisfaction and transfer cost.2. Researches the relationship between the various manufactures satisfaction in different alternative, transfer cost and positions.This model and analyze not only provides the basis, but also makes cycle of whole marketing strategy choice played a global leading function.Finally we summarize the work which needed perfect and prospect in the future.