Price competition on graphs

Research, Report, Preprint English OPEN
Adriaan R. Soetevent;
  • Publisher: Tinbergen Institute
  • Subject: Hotelling-Modell | Graphentheorie | D43 | spatial competition | spatial competition, Hotelling, graphs | L10 | Hotelling | Preiswettbewerb | R12 | graphs | Nichtkooperatives Spiel
    • 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. I propose an algorithm to calculate firm-level demand for any given graph, conditional on prices and firm locations. One feature of graph models of price... View more
  • References (2)

    Bachmeier, L. J., and J. M. Griffin (2003): \New Evidence on Asymmetric Gasoline Price Responses," Review of Economics and Statistics, 85(3), 772{776.

    Irmen, A., and J.-F. Thisse (1998): \Competition in Multi-Characteristics Spaces: Hotelling Was Almost Right," Journal of Economic Theory, 78, 76{102.

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