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Hotelling's Location Model in Mixed Duopoly

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  • Yuanzhu Lu

    ()
    (Department of Economics, National University of Singapore)

Abstract

We investigate a mixed duopoly market where a welfare-maximizing public firm competes against a profit-maximizing private firm, using a linear-city location-then-price model with linear transportation costs. We find that, compared with the results in the purely private duopoly case discussed by Hotelling (1929) and d' Aspremont, Gabszewicz, and Thisse (1979), the condition under which price equilibrium exists for every location of private firm and public firm is changed while the main result of no subgame perfect Nash equilibrium (SPNE) for the game still holds true.

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File URL: http://www.accessecon.com/pubs/EB/2006/Volume8/EB-06H40003A.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 8 (2006)
Issue (Month): 1 ()
Pages: 1-10

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Handle: RePEc:ebl:ecbull:eb-06h40003

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  1. Lorenz NETT, 1993. "Mixed Oligopoly With Homogeneous Goods," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 64(3), pages 367-393, 07.
  2. CREMER, Helmuth & MARCHAND, Maurice & THISSE, Jacques-François, . "Mixed oligopoly with differentiated products," CORE Discussion Papers RP -930, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. de Fraja, Giovanni & Delbono, Flavio, 1990. " Game Theoretic Models of Mixed Oligopoly," Journal of Economic Surveys, Wiley Blackwell, vol. 4(1), pages 1-17.
  4. Fjell, Kenneth & Heywood, John S., 2004. "Mixed oligopoly, subsidization and the order of firm's moves: the relevance of privatization," Economics Letters, Elsevier, vol. 83(3), pages 411-416, June.
  5. Toshihiro Matsumura & Noriaki Matsushima, 2003. "Mixed Duopoly with Product Differentiation: Sequential Choice of Location," Australian Economic Papers, Wiley Blackwell, vol. 42(1), pages 18-34, 03.
  6. Pal, Debashis, 1998. "Endogenous timing in a mixed oligopoly," Economics Letters, Elsevier, vol. 61(2), pages 181-185, November.
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Cited by:
  1. Yasuo Sanjo, 2007. "Hotelling's Location Model with Quality Choice in Mixed Duopoly," Economics Bulletin, AccessEcon, vol. 18(2), pages 1-11.

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