LOCAL MARKET STRUCTURE IN A HOTELLING TOWN

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

Authors

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

Journal

Title: Journal of Dynamics and Games

Vol. 3 No. (2)

Pages: 75-100

Publisher: American Institute of Mathematical Sciences

Indexing

ISI Web of Knowledge - 2 Citations

Scopus - 3 Citations

Other information

Authenticus ID: P-00K-A3Z

DOI: 10.3934/jdg.2016004

Abstract (EN): We develop a theoretical framework to study the location-price competition in a Hotelling-type network game, extending the Hotelling model, with linear transportation costs, from a line (city) to a network (town). We show the existence of a pure Nash equilibrium price if, and only if, some explicit conditions on the production costs and on the network structure hold. Furthermore, we prove that the local optimal localization of the firms are at the cross-roads of the town.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 26