  Retail competition today can be described by three main features: i)
oligopolistic competition, ii) multi-store settings, and iii) the presence of
large economies of scale. In these markets, firms usually apply a centralized
decisions making process in order to take full advantage of economies of
scales, e.g. retail distribution centers. In this paper, we model and analyze
the stability and chaos of retail competition considering all these issues. In
particular, a dynamic multi-market Cournot-Nash equilibrium with global
economies and diseconomies of scale model is developed. We confirm the
non-intuitive hypothesis that retail multi-store competition is more unstable
that traditional small business that cover the same demand. The main sources of
stability are the scale parameter and the number of markets

Economics