A Dynamic Hotelling-Type Model

Abstract

This paper describes two strategies which analyse the problem of locating public facilities, such as health and daycare centers, in a spatial market with consumer demand increasing over time. Both strategies are required to satisfy some prescribed optimality criterion at the end of a given planning period. Production (demand) totals, corresponding to each strategy, are compared for any given demand level. Finally, the possibility of reaping scale economies, as production expands, is explored.