Brekke, Kurt Richard; Cellini, Roberto; Siciliani, Luigi; … - C.E.P.R. Discussion Papers - 2008
utilities), using a Hotelling framework, in the presence of sluggish demand. We take a differential game approach, and derive … competition (lower transportation costs and/or less sluggish demand) leads to higher quality in both solutions, but the quality … response to increased competition is weaker when players use closed-loop strategies. In both solutions, quality and demand move …