| Name: | Description: | Size: | Format: | |
|---|---|---|---|---|
| 450.31 KB | Adobe PDF |
Advisor(s)
Abstract(s)
We develop a theoretical framework to study the location-price competition in a Hotelling-type network game, extending the Hotelling model, with linear transportation costs, from a line (city) to a network (town). We show the existence of a pure Nash equilibrium price if, and only if, some ex- plicit conditions on the production costs and on the network structure hold. Furthermore, we prove that the local optimal localization of the firms are at the cross-roads of the town.
Description
Keywords
Spatial competition Model Networks Price
Citation
Pinto, Alberto A.; Almeida, João P.; Parreira, Telmo (2016). Local market structure in a hotelling town. JOURNAL OF DYNAMICS AND GAMES. 3:1, p. 75-100
Publisher
American Institute of Mathematical Sciences