We've just created a relatively simple model to demonstrate some features of competition on a spatial basis. We can try to extend this into a more realistic model of local competition by adding on some more complex behaviors, and integrating real-world data. If we think of this in phases, it might look something like this:
Phase 1 - Building a simple Hotelling model in 2D
Phase 2 - Introduces more realistic behavior for businesses and customers, and creates a more realistic environment
Phase 3 - Add real world data
We can add a new type of agent which represents the actual locations that a business can occupy (since they can't actually move around to anywhere they would like). Different location will have varying rents as well.
Location - represent lots/storefronts that Businesses may occupy in the environment. Each Location agent has a square footage size and rent cost.
We can then find some data with information about vacant storefronts in a city, to finish extending the model. Check out the Local Competition model to see how we've implemented these extensions.