Competition with Online and Offline Demands considering Logistics Costs Based on the Hotelling Model

<table>Equilibrium profit varying with shop 1’s location <svg height="12.0395pt" id="M103" style="vertical-align:-2.3616pt" version="1.1" viewbox="-0.0498162 -9.6779 16.3912 12.0395" width="16.3912pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.0135,0,0,-0.0135,0,0)"><path d="M300 -147C201 -63 143 98 143 270S200 602 300 686L282 710C136 610 70 450 70 271V270C70 89 136 -72 282 -170L300 -147Z" id="g113-41"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="346" vert-adv-y="346"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,4.688,0)"><path d="M483 97L471 123C436 91 401 65 392 65C388 65 384 74 390 106C414 239 444 378 457 429L455 433C444 433 429 436 416 439C392 444 368 448 344 448C281 448 204 415 152 376C71 315 23 205 23 103C23 21 57 -12 85 -12C114 -12 149 6 185 34C231 70 285 119 329 183H331L309 81C292 0 308 -12 326 -12C350 -12 421 24 483 97ZM374 387C370 363 356 291 345 261C315 193 181 50 139 50C124 50 110 71 110 118C110 224 153 331 218 379C238 394 271 402 301 402C329 402 359 394 374 387Z" id="g113-98"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="506" vert-adv-y="506"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,11.545,0)"><path d="M275 270C275 450 212 609 64 710L45 686C145 604 203 442 203 270S147 -63 45 -147L64 -170C213 -68 275 89 275 270Z" id="g113-42"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="346" vert-adv-y="346"></glyph.data></g></svg> and unit delivery logistics cost <svg height="15.1346pt" id="M104" style="vertical-align:-2.3616pt" version="1.1" viewbox="-0.0498162 -12.773 20.8983 15.1346" width="20.8983pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.0135,0,0,-0.0135,0,0)"><path d="M300 -147C201 -63 143 98 143 270S200 602 300 686L282 710C136 610 70 450 70 271V270C70 89 136 -72 282 -170L300 -147Z" id="g113-41"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="346" vert-adv-y="346"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,4.688,0)"><path d="M383 397C383 424 344 448 299 448C244 448 172 409 132 375C66 319 23 227 23 146C23 42 74 -12 146 -12C208 -12 298 30 359 103L343 124C315 95 248 48 192 48C145 48 111 85 111 163C111 228 129 294 151 330C171 363 201 401 241 401C275 401 302 384 325 356C332 347 339 344 348 348C373 360 383 381 383 397Z" id="g113-100"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="406" vert-adv-y="406"></glyph.data></g><g transform="matrix(.0095,0,0,-0.0095,10.193,-5.984)"><path d="M538 684C542 703 539 710 529 710C512 710 455 682 363 674L361 644H396C444 644 448 642 438 594L405 438C373 450 347 451 336 451C288 451 200 416 147 374C69 312 24 207 24 113C24 29 60 -12 94 -12C126 -12 156 4 196 30C231 53 296 100 346 166H348L328 81C311 10 325 -12 348 -12C380 -12 450 24 512 98L495 125C466 97 431 70 417 70C408 70 408 80 411 98L538 684ZM390 373L361 240C336 196 210 56 145 56C132 56 113 73 113 131C113 216 156 338 220 379C243 394 266 402 303 402C331 402 375 388 390 373Z" id="g50-101"></path><glyph.data ascent="3443" descent="-2856" horiz-adv-x="564" vert-adv-y="564"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,16.06,0)"><path d="M275 270C275 450 212 609 64 710L45 686C145 604 203 442 203 270S147 -63 45 -147L64 -170C213 -68 275 89 275 270Z" id="g113-42"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="346" vert-adv-y="346"></glyph.data></g></svg>.</table>

Mathematical Problems in Engineering

fig11

Figure 11

Figure 11: Competition with Online and Offline Demands considering Logistics Costs Based on the Hotelling Model 