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Confidence, pessimism and their impact on product differentiation in a hotelling model with demand location uncertainty

Kauffeldt, Florian; Wiesenfarth, Boris Roland - 2014

We analyze a Hotelling location-then-price duopoly game under demand uncertainty with uniformly distributed consumers …

Persistent link: https://www.econbiz.de/10010362151

Uncertainty in Spatial Duopoly with Possibly Asymmetric Distributions: a State Space Approach

Meagher, Kieron J.; Zauner, Klaus G. - Research School of Economics, College of Business and … - 2008

In spatial competition firms are likely to be uncertain about consumer locations when launching products either because of shifting demograph- ics or of asymmetric information about preferences. Realistically distri- butions of consumer locations should be allowed to vary over states and need...

Persistent link: https://www.econbiz.de/10004971401

Complete Solution of the Hotelling Problem: Equilibrium in Secure Strategies for the Price Subgame

Iskakov, M.; Iskakov, A. - In: Journal of the New Economic Association 13 (2012) 1, pp. 10-33

(Hotelling, 1929). We employ the concept of the equilibrium in secure strategies (ESS). The reviewed definitions of the ESS and … of the best secure response are presented. The set of the secure responses in the Hotelling game is obtained both in the … case of elastic and inelastic demand. The complete solution of the two-stage location-price Hotelling game is given for the …

Persistent link: https://www.econbiz.de/10010540369

Duopoly Competition and Regulation in a Two-Sided Health Care Insurance Market with Product Differentiation

Boilley, Audrey - Centre de Recherche sur les Stratégies Économiques … - 2013

We compare duopoly competition with a regulated public monopoly in the health care insurance sector using the two-sided market approach. Health plans allow policyholders and physicians to interact. Policyholders have a preference for one of two health plans and value the diversity of physicians....

Persistent link: https://www.econbiz.de/10010692334

Product differentiation decisions under ambiguous consumer demand and pessimistic expectations

Król, Michał - In: International Journal of Industrial Organization 30 (2012) 6, pp. 593-604

This paper studies product differentiation decisions in a spatial duopoly with limited information on consumer demand. In particular, a situation is discussed in which the firms do not know the exact distribution of the random location of consumer demand and its responsiveness to price changes...

Persistent link: https://www.econbiz.de/10011051654

Solution of the Hotelling’s game in secure strategies

Iskakov, Mikhail; Iskakov, Alexey - In: Economics Letters 117 (2012) 1, pp. 115-118

We show that the price-setting subgame in the classic Hotelling’s model (1929) with the linear transport costs has the …

Persistent link: https://www.econbiz.de/10010580497

Winner-take-all price competition

Morgan, John; Baye, Michael R. - In: Economic Theory 19 (2002) 2, pp. 271-282

We analyze an oligopoly model of homogeneous product price competition that allows for discontinuities in demand and/or costs. Conditions under which only zero profit equilibrium outcomes obtain in such settings are provided. We then illustrate through a series of examples that the conditions...

Persistent link: https://www.econbiz.de/10005596644

Spacial Equilibrium in a State Space Approach to Demand Uncertainty

Meagher, Kieron J.; Zauner, Klaus G. - School of Economics, UNSW Business School - 2007

Firms are likely to be uncertain about consumer preferences when launching products. The existing literature models preference uncertainty as an additive shock to the consumer distribution in a characteristic space model. The additive shock only shifts the mean of the consumers' ideal points. We...

Persistent link: https://www.econbiz.de/10005569944

Price Responses to Market Entry With and Without Endogenous Product Choice

Sanner, Helge - Lehrstuhl für Volkswirtschaftslehre, insbesondere … - 2005

Textbook wisdom says that competition yields lower prices and higher consumer surplus than monopoly. We show in two versions of a simple location-product differentiation model with and without endogenous choice of products that these two results have to be qualified. In both models, more than...

Persistent link: https://www.econbiz.de/10005772981

Advertising and Newspaper Differentiation: On the Role of Readers’ Advertising Taste

Kind, Hans Jarle; Koethenbuerger, Marko; Schjelderup, … - Institutt for foretaksøkonomi, Norges Handelshøyskole … - 2007

Newspapers have an incentive to moderate their profile in order to gain a larger readership and thus higher advertising revenue. We show that this incentive is weakened both if readers are ad-haters and if they are ad-lovers.

Persistent link: https://www.econbiz.de/10005190576