Price Competition on Graphs

Research, Preprint OPEN
Pim Heijnen ; Adriaan Soetevent (2014)
  • Publisher: Tinbergen Institute Amsterdam and Rotterdam
  • Subject: D43 | R12 | graphs | spatial competition | spatial competition, Hotelling, graphs | L10 | Hotelling
    • jel: jel:D43 | jel:R12 | jel:L10
      ddc: ddc:330

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... View more
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