LOCALIZATION AND PRICES IN THE QUADRATIC HOTELLING MODEL WITH UNCERTAINTY

• Type: Article in International Scientific Journal
• Date: 2016

Authors

Alberto A. Pinto (Author) FCUP; Parreira, T (Author) Other

Journal

Title: Journal of Dynamics and Games

Vol. 3 No. (2)

Pages: 121-142

Publisher: American Institute of Mathematical Sciences

Indexing

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Other information

Authenticus ID: P-00M-DEE

DOI: 10.3934/jdg.201.6006

Abstract (EN): For the quadratic Hotelling model, we study the optimal localization and price strategies under incomplete information on the production costs of the firms. We compute explicitly the pure Bayesian-Nash price duopoly equilibrium and we prove that it does not depend upon the distributions of the production costs of the firms, except on their first moments. We find when the maximal differentiation is a local optimum for the localization strategy of both firms.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 22