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Hotelling's Location Model with Quality Choice in Mixed Duopoly

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Author Info
Yasuo Sanjo () (Graduate School of Economics, Nagoya University)
Abstract

We investigate a mixed duopoly market by introducing quality choice into the Hotelling-type spatial competition model with linear transportation costs. We show that there does not exist a subgame perfect Nash equilibrium (SPNE) of location choice in the three-stage game that is location-then-quality choice and subsequent price choice. Moreover, we show the conditions of the existence of the quality equilibrium.

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File URL: http://www.accessecon.com/pubs/EB/2007/Volume18/EB-07R30001A.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 18 (2007)
Issue (Month): 2 ()
Pages: 1-11
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:18:y:2007:i:2:p:1-11

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Find related papers by JEL classification:
R3 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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  1. Thomas P. Lyon, 1999. "Quality Competition, Insurance, and Consumer Choice in Health Care Markets," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 8(4), pages 546-580, December. [Downloadable!] (restricted)
  2. Cremer, Helmuth & Marchand, Maurice & Thisse, Jacques-Francois, 1991. "Mixed oligopoly with differentiated products," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 43-53, March. [Downloadable!] (restricted)
  3. de Fraja, Giovanni & Delbono, Flavio, 1990. " Game Theoretic Models of Mixed Oligopoly," Journal of Economic Surveys, Blackwell Publishing, vol. 4(1), pages 1-17.
  4. Pedro Pita Barros & Xavier Martinez-Giralt, 2002. "Public and Private Provision of Health Care," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 11(1), pages 109-133, 03. [Downloadable!] (restricted)
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  5. Toshihiro Matsumura & Noriaki Matsushima, 2003. "Mixed Duopoly with Product Differentiation: Sequential Choice of Location," Australian Economic Papers, Blackwell Publishing, vol. 42(1), pages 18-34, 03. [Downloadable!] (restricted)
  6. Nilssen, Tore & Sorgard, Lars, 2002. "A public firm challenged by entry: duplication or diversity?," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 259-274, March. [Downloadable!] (restricted)
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  7. Hugh Gravelle & Giuliano Masiero, . "Quality incentives in a regulated market with imperfect information and switching costs: capitation in general practice," Discussion Papers 00/18, Department of Economics, University of York. [Downloadable!]
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  8. Kurt R. Brekke & Robert Nuscheler & Odd Rune Straume, 2006. "Quality and Location Choices under Price Regulation," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 15(1), pages 207-227, 03. [Downloadable!] (restricted)
  9. Economides, Nicholas, 1989. "Quality variations and maximal variety differentiation," Regional Science and Urban Economics, Elsevier, vol. 19(1), pages 21-29, February. [Downloadable!] (restricted)
  10. Toshihiro Matsumura & Noriaki Matsushima, 2004. "Endogenous Cost Differentials between Public and Private Enterprises: A Mixed Duopoly Approach," Economica, London School of Economics and Political Science, vol. 71(284), pages 671-688, November. [Downloadable!] (restricted)
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