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Hotelling's Location Model with Quality Choice in Mixed Duopoly

Author

Listed:
  • Yasuo Sanjo

    (Graduate School of Economics, Nagoya University)

Abstract

We investigate a mixed duopoly market by introducing quality choice into the Hotelling-type spatial competition model with linear transportation costs. We show that there does not exist a subgame perfect Nash equilibrium (SPNE) of location choice in the three-stage game that is location-then-quality choice and subsequent price choice. Moreover, we show the conditions of the existence of the quality equilibrium.

Suggested Citation

  • Yasuo Sanjo, 2007. "Hotelling's Location Model with Quality Choice in Mixed Duopoly," Economics Bulletin, AccessEcon, vol. 18(2), pages 1-11.
    • Handle: RePEc:ebl:ecbull:eb-07r30001
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    File URL: http://www.accessecon.com/pubs/EB/2007/Volume18/EB-07R30001A.pdf
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    References listed on IDEAS

    as
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    3. Kurt R. Brekke & Robert Nuscheler & Odd Rune Straume, 2006. "Quality and Location Choices under Price Regulation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(1), pages 207-227, March.
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    8. Gravelle, Hugh & Masiero, Giuliano, 2000. "Quality incentives in a regulated market with imperfect information and switching costs: capitation in general practice," Journal of Health Economics, Elsevier, vol. 19(6), pages 1067-1088, November.
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    Citations

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    Cited by:

    1. Arnut Paothong & G. Ladde, 2014. "Agent-based modeling simulation under local network externality," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(1), pages 1-26, April.
    2. Yasuo Sanjo, 2009. "Quality choice in a health care market: a mixed duopoly approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 10(2), pages 207-215, May.
    3. Levin, Mark (Левин, Марк) & Busygin, V. (Бусыгин, В.) & Popova, E.V. (Попова, Е.), 2016. "Development and Analysis of Strategies for Selecting Models of Mixed Market Participants [Разработка И Анализ Моделей Выбора Стратегий Участниками Смешанных Рынков]," Working Papers 3054, Russian Presidential Academy of National Economy and Public Administration.
    4. Vitor Miguel Ribeiro, 2014. "Long-term regulatory orientation and the ideal timing of quality investment," FEP Working Papers 552, Universidade do Porto, Faculdade de Economia do Porto.
    5. Juan Pedro Aznar, 2021. "Differentiation and pricing strategies for hotels in sun and beach destinations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 289-293, March.
    6. Yasuo Sanjo, 2009. "Bertrand Competition In A Mixed Duopoly Market," Manchester School, University of Manchester, vol. 77(3), pages 373-397, June.
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    8. Hikaru Ogawa & Yasuo Sanjo, 2011. "Market integration and location choice: a mixed oligopoly approach," Letters in Spatial and Resource Sciences, Springer, vol. 4(3), pages 157-166, October.

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    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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