Abstract This research investigates firm’s location choice and its the competition behavior influence textbook publishing industry, attempts by a spatial competition theory construct simple model, applies three stage games to analyze elementary and high schools textbook market competition behavior correlation question and so on equilibrium of price, quantity, location decision-making, further understood between the firms competes the behavior pattern, and by firm’s textbooks and the reference book product price, the post-sale service and the market location and so on the endogenous variable separately to the product margin of production cost, the transportation cost, expends the student population and so on each exogenous parameter to make the comparison static analysis, the discussion above each variable regarding the firm competition location choice overlapping influence.