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Duopoly in Space

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  • John M. Hartwick
  • Philip G. Hartwick

Abstract

Hotelling's 1929 article concerning the behavior of duopolists in a spatial setting has had a lasting influence in economics and political science. With a simple model, he was able to elucide why "our cities become uneconomically large and business districts within them too concentrated"; and why "Methodist and Presbyterian churches are too much alike;cider is too homogenous." In this paper, we develop the constant non-zero elasticity of demand case which Hotelling referred to.
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Suggested Citation

  • John M. Hartwick & Philip G. Hartwick, 1971. "Duopoly in Space," Canadian Journal of Economics, Canadian Economics Association, vol. 4(4), pages 485-505, November.
    • Handle: RePEc:cje:issued:v:4:y:1971:i:4:p:485-505
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    References listed on IDEAS

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    1. Garvey, Gerald, 1966. "The Theory of Party Equilibrium," American Political Science Review, Cambridge University Press, vol. 60(1), pages 29-38, March.
    2. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
    3. J. W. Friedman, 1968. "Reaction Functions and the Theory of Duopoly," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(3), pages 257-272.
    4. Paul A. Samuelson, 2011. "The Collected Scientific Papers of Paul Samuelson," MIT Press Books, The MIT Press, edition 1, volume 7, number 0262015749 edited by Janice Murray, December.
    5. A. P. Lerner & H. W. Singer, 1937. "Some Notes on Duopoly and Spatial Competition," Journal of Political Economy, University of Chicago Press, vol. 45(2), pages 145-145.
    6. R. M. Cyert & M. H. DeGroot, 1970. "Multiperiod Decision Models with Alternating Choice as a Solution to the Duopoly Problem," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 410-429.
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    Cited by:

    1. H.C.W.L. Williams & M.L. Senior, 1977. "A Retail Location Model with Overlapping Market Areas: Hotelling's Problem Revisited," Urban Studies, Urban Studies Journal Limited, vol. 14(2), pages 203-205, June.
    2. Bertrand Ottino-Loffler & Forrest Stonedahl & Vipin Veetil & Uri Wilensky, 2017. "Spatial Competition with Interacting Agents," International Journal of Microsimulation, International Microsimulation Association, vol. 10(3), pages 75-91.

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