當一個市場有利可圖時，會引誘一些廠商加入，因此新進廠商進入市場之後會考慮到既有廠商的位置進而選擇他的位置。我們找了一些有關廠商設點的研究，在過去研究當中，最早是由Hotelling這位學者所提出來的，他提出Hotelling model，而這個模型是在說只有兩個廠商在一個線性的市場上，位置的選擇是整個模型探討的重點。但是我們認為模型有不合理的地方，第一，在現實生活當中線性市場是不可能存在的，因為在市場裡不可能單純的只有一條街，第二，通常廠商想加入這個市場時，大多是認為市場是有利可圖才想加入。因此我們建立一個模型，而這個模型的基本情境是有一個廠商已經在這個二維市場裡很久了，然而一個新的廠商想加入這個市場裡。
新廠商一開始進入市場的時候，因為市場資訊的不足，所以會追隨既有廠商的價格去訂價。然而在第二期的時候，因為有了先前的銷售資訊，並且也了解了消費者有追求多樣性(Variety seeking)的特性，因此，新廠商會將消費者特性和銷售資訊納入訂價考量來。基於所收集到的資訊，我們透過建立的模型來分析新廠商的價格制定。

New firm will be tempted to enter the market if some of the existing firms in the market are earning positive economic profits; consequently, based on the existing firm’s location, new firm is determining the location. The location research was adopted in many papers. The earliest research is traced back to the study by a scholar named Hotelling who later proposed the Hotelling model. This model indicates that two firms that exist in a linear marketplace need to choose the locations before they start the business.
But this model is not sustainable for two factors: first, the linear market doesn’t exist because there are more than one street than there was; secondary, firms usually join the market on account of the large market share. Consequently, we build up a new model which discusses the situation that there exists a growing market which is dominated by one firm, and the other firm wants to join in the place.
At first, the new firm enters the market, and follows the existing firm’s price since it doesn’t have enough information of the market in period 1. In the period 2, consumers have variety seeking tendencies in the market; therefore, new firm adopted optimal price strategy which takes consideration of not only variety consumer seeking but also the sales information from period 1. Based on the collected information, we build a model to analyze the optimal selling price for new firm in period 2.

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