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A high-rise on Main Street: Hotelling with mobile consumers

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Author Info
Martin Richardson ()

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Abstract

This note considers Hotelling’s (1929) model of locational choices by two firms and subsequent price competition in a setting where atomistic consumers locate first. It is shown that any equilibrium in pure strategies involves either one or two mass points with all surplus captured either by the consumers or by firms, respectively.

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File URL: http://www.ecocomm.anu.edu.au/research/papers/pdf/wp444.pdf
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Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANUCBE School of Economics Working Papers with number 2004-444.

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Length: 19 pages
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:acb:cbeeco:2004-444

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  1. Fujita, Masahisa & Thisse, Jacques-Francois, 1986. "Spatial Competition with a Land Market: Hotelling and Von Thunen Unified," Review of Economic Studies, Blackwell Publishing, vol. 53(5), pages 819-41, October. [Downloadable!] (restricted)
  2. Economides, Nicholas, 1986. "Minimal and maximal product differentiation in Hotelling's duopoly," Economics Letters, Elsevier, vol. 21(1), pages 67-71. [Downloadable!] (restricted)
  3. Osborne, Martin J & Pitchik, Carolyn, 1987. "Equilibrium in Hotelling's Model of Spatial Competition," Econometrica, Econometric Society, vol. 55(4), pages 911-22, July. [Downloadable!] (restricted)
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This page was last updated on 2009-12-17.

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