Abstract
The consequences of imposing the revenue-capacity condition (which can be interpreted as profit maximization) to determine supply patterns in conjunction with the production-constrained spatial interaction model with a general attractiveness function are presented. Convergence of the quasi-balancing factor method is shown to be an insufficient condition for providing an equilibrium solution; three different sets of results are obtained for an illustrative retailing system. Two of these results are shown to be nonoptimal.

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