publication . Preprint . 2004

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

Martin Richardson;
Open Access
  • Published: 01 Jul 2004
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.

d'Aspremont, C., J. Gabszewicz and J.-F. Thisse, 1979, On Hotelling's “Stability in Competition”. Econometrica 47#5, 1145-1150. [OpenAIRE]

Economides, N., 1986, Minimal and maximal product differentiation in Hotelling's duopoly. Economics Letters 21, 67-71. [OpenAIRE]

Fujita, M., and J.-F. Thisse, 1986, Spatial competition with a land market: Hotelling and Von Thunen unified. Review of Economic Studies 53, 819-841.

Hotelling, H., 1929, Stability in competition. Economic Journal 39#153, 41-57.

Osborne, M. and C. Pitchik, 1987, Equilibrium in Hotelling's model of spatial competition. Econometrica 55#4, 911-922. [OpenAIRE]

Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue