Showing 1 - 10 of 820
Persistent link: https://www.econbiz.de/10014532248
I show that in any symmetric Nash equilibrium of Hotelling's pure location game, as the number of firms becomes large, the limiting distribution of market shares converges to a Gamma(2,2) distribution. Remarkably, this is true regardless of the distribution of consumers. The proof for the...
Persistent link: https://www.econbiz.de/10012901209
This paper shows that Stackelberg has turned the Cournot competitors into monopolists, to result in Bertrand's equilibrium, and to fall into a prisoner's dilemma. This paper then applies Hotelling's theory to break the dilemma
Persistent link: https://www.econbiz.de/10013001891
This paper extends the traditional Hotelling's model of spatial competition by allowing firms to choose the degree of general purposeness of their products before they compete in prices. The degree of general purposeness is approximated by endogenizing the per-unit transportation cost...
Persistent link: https://www.econbiz.de/10014028051
This paper sheds light on a recent empirical controversy about the effect of competition on price discrimination in airline markets (Borenstein and Rose (1994), Gerardi and Shapiro, (2009)). We introduce individual demand uncertainty into Hotelling’s model of horizontal product differentiation...
Persistent link: https://www.econbiz.de/10010226097
In a two-firm model where each firm sells a high-quality and a low-quality version of a product, customers differ with respect to their brand preferences and their attitudes towards quality. We show that the standard result of quality-independent markups crucially depends on the assumption that...
Persistent link: https://www.econbiz.de/10010227304
This article provides a tractable model of inter-temporal price-discrimination by heterogeneous firms, imperative for our understanding of advance purchase markets in the wake of entry. The pricing schedule of a more efficient entrant is found to differ systematically from the pricing schedule...
Persistent link: https://www.econbiz.de/10012548537
This paper sheds light on an empirical controversy about the effect of competition on price discrimination. We introduce individual demand uncertainty into Hotelling’s model of product differentiation and show that firms offer advance purchase discounts. Consumers choose between an early...
Persistent link: https://www.econbiz.de/10013315680
This paper sheds light on a recent empirical controversy about the effect of competition on price discrimination in airline markets (Borenstein and Rose (1994), Gerardi and Shapiro, (2009)). We introduce individual demand uncertainty into Hotelling’s model of horizontal product differentiation...
Persistent link: https://www.econbiz.de/10014038023
There are examples of entry in two-sided markets, where first entrants occupy a ‘central location’ and serve agents with ‘intermediate tastes,’ while later entrants are niche players. Why would the first entrant choose to become a ‘general’ platform, given that later entrants will...
Persistent link: https://www.econbiz.de/10014203499