Price Competition on Graphs
Research, Report, Preprint
Adriaan R. Soetevent
- Publisher: Tinbergen Institute Amsterdam and Rotterdam
Hotelling-Modell | Graphentheorie | D43 | spatial competition | spatial competition, Hotelling, graphs | L10 | Hotelling | Preiswettbewerb | R12 | graphs | Nichtkooperatives Spiel
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...