Sequential entry and plant location in oligopolistic competition

Weberian location theory is confined to a single firm framework, and pays very little attention to the interdependence among firms. To fill up this gap, this article incorporates oligopolistic competition into a simple Weberian model to investigate industrial location patterns when firms are shortsighted, enter sequentially, and locate once-and-for-all. It is shown that the location of a new entrant is closer to (farther away from) the market site compared with the existing firms if the industry is characterized by diseconomies (economies) of scale.