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This paper extends Hotelling's model of price competition with quadratic transportation costs from a line to graphs. I …'Aspremont et al. (1979) does not extend to simple star graphs and I conjecture thatthis non-existence result holds more generally …
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Two sellers engage in price competition to attract buyers located on a network. The value of the good of either seller to any buyer depends on the number of neighbors on the network who consume the same good. For a generic specification of consumption externalities, we show that an equilibrium...
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