
doi: 10.2139/ssrn.1725158
handle: 11245/1.332546 , 10419/86894
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 competition is that spatial discontinuities in firm-level demand may occur. I show that the existence result of D'Aspremont et al. (1979) does not extend to simple star graphs. I conjecture that this non-existence result holds more generally for all graph models with two or more firms that cannot be reduced to a line or circle.
graphs, 330, Preiswettbewerb, ddc:330, L10, Hotelling, Hotelling-Modell, R12, 004, spatial competition, Nichtkooperatives Spiel, Graphentheorie, spatial competition, Hotelling, graphs, D43, jel: jel:D43, jel: jel:L10, jel: jel:R12
graphs, 330, Preiswettbewerb, ddc:330, L10, Hotelling, Hotelling-Modell, R12, 004, spatial competition, Nichtkooperatives Spiel, Graphentheorie, spatial competition, Hotelling, graphs, D43, jel: jel:D43, jel: jel:L10, jel: jel:R12
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