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This paper investigates on price competition in the Hotelling location model with linear transportation costs when consumer preferences are affected by the number of consumers shopping at the same store. A consumption externality permits to consider the imitation and the congestion effects which...
Persistent link: https://www.econbiz.de/10012733775
This paper provides the Nash equilibrium under homogeneous duopoly a la Bertrand. The optimal consumers' behaviour is obtained assuming a specific externality in the utility function. This externality permits to consider at the same time, and not alternatively, the imitation and the crowd...
Persistent link: https://www.econbiz.de/10014029784
Persistent link: https://www.econbiz.de/10003699252
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