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LOCAL MARKET STRUCTURE IN A HOTELLING TOWN

Title
LOCAL MARKET STRUCTURE IN A HOTELLING TOWN
Type
Article in International Scientific Journal
Year
2016
Authors
Almeida, JP
(Author)
Other
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Parreira, T
(Author)
Other
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Journal
Vol. 3 No. (2)
Pages: 75-100
Other information
Authenticus ID: P-00K-A3Z
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
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