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Hotelling competition with demand on parallel line

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  • Huang, Tao

Abstract

This paper discusses equilibria in Hotelling competition under assumption of the demand being on a line parallel to the firms' location line. When the distance between two lines is large enough, the game has SPE in pure strategies.

Suggested Citation

  • Huang, Tao, 2009. "Hotelling competition with demand on parallel line," Economics Letters, Elsevier, vol. 102(3), pages 155-157, March.
    • Handle: RePEc:eee:ecolet:v:102:y:2009:i:3:p:155-157
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    References listed on IDEAS

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    1. Osborne, Martin J & Pitchik, Carolyn, 1987. "Equilibrium in Hotelling's Model of Spatial Competition," Econometrica, Econometric Society, vol. 55(4), pages 911-922, July.
    2. Partha Dasgupta & Eric Maskin, 1986. "The Existence of Equilibrium in Discontinuous Economic Games, II: Applications," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 27-41.
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    2. Stefano Colombo, 2011. "Spatial price discrimination in the unidirectional Hotelling model with elastic demand," Journal of Economics, Springer, vol. 102(2), pages 157-169, March.
    3. Stefano Colombo, 2016. "A Model of Three Cities," International Regional Science Review, , vol. 39(4), pages 386-416, October.

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