publication . Preprint . 2004

A high-rise on Main Street: Hotelling with mobile consumers

Martin Richardson;
Open Access
  • Published: 01 Jul 2004
Abstract
This note considers Hotelling’s (1929) model of locational choices by two firms and subsequent price competition in a setting where atomistic consumers locate first. It is shown that any equilibrium in pure strategies involves either one or two mass points with all surplus captured either by the consumers or by firms, respectively.

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