The Existence of Equilibria in the 3-Facility Hotelling Model in a Tree

This paper considers the location of three market share maximizing facilities on a tree network. Assume that the demand originates at the vertices of the tree and that the facilities can locate at the vertices or on the edges of the tree. It is shown that the problem may have agglomerated, dispersed, or have no equilibria at all. Conditions for these cases are developed in the paper.