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ConsiderthehorizontaldifferentiationmodelofLinearCitytheconsumersareuni- formly distributed on the segment [0.1]. Consumers have a transport cost td where d is the distance traveled. All consumers have a valuation s

Considerthehorizontaldifferentiationmodelof"LinearCity"theconsumersareuni- formly distributed on the segment [0.1]. Consumers have a transport cost td where d is the distance traveled. All consumers have a valuation s and the marginal cost of producing the good is c. The fixed cost to open a store is f for every location.

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