Hanaki, Nobuyuki; Tanimura, Emily; Vriend, Nicolaas J. - 2016
We study a linear location model (Hotelling, 1929) in which n (with n = 2) boundedly rational players follow (noisy) myopic best-reply behavior. We show through numerical and mathematical analysis that such players spend almost all the time clustered together near the center, re-establishing the...