Price Competition on Graphs
- Publisher: Tinbergen Institute Amsterdam and Rotterdam
D43 | R12 | graphs | spatial competition | spatial competition, Hotelling, graphs | L10 | Hotelling
This paper extends Hotelling's model of price competition with quadratic transportation costs from a line to graphs. We derive an algorithm to calculate firm-level demand for any given graph, conditional on prices and firm locations. These graph models of price competit...