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A unidirectional Hotelling model revisited

Author

Listed:
  • Takeshi Ebina

    (School of Management, Tokyo University of Science)

  • Daisuke Shimizu

    (Faculty of Economics, Gakushuin University)

Abstract

We consider a two-stage location-price Hotelling model where the consumers can only buy from one direction, as presented by Kharbach (2009, Economics Bulletin). We show that the equilibrium outcome derived by Kharbach does not constitute a subgame perfect Nash equilibrium.

Suggested Citation

  • Takeshi Ebina & Daisuke Shimizu, 2012. "A unidirectional Hotelling model revisited," Economics Bulletin, AccessEcon, vol. 32(4), pages 2870-2875.
    • Handle: RePEc:ebl:ecbull:eb-12-00200
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I4-P276.pdf
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    References listed on IDEAS

    as
    1. Tore Nilssen & Lars Sørgard, 1998. "Time Schedule and Program Profile: TV News in Norway and Denmark," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(2), pages 209-235, June.
    2. Hamilton, Jonathan H. & Thisse, Jacques-Francois & Weskamp, Anita, 1989. "Spatial discrimination : Bertrand vs. Cournot in a model of location choice," Regional Science and Urban Economics, Elsevier, vol. 19(1), pages 87-102, February.
    3. Stefano Colombo, 2009. "The unidirectional Hotelling model with spatial price discrimination," Economics Bulletin, AccessEcon, vol. 29(4), pages 3031-3040.
    4. Tore Nilssen, 2017. "Erratum," Journal of Industrial Economics, Wiley Blackwell, vol. 65(4), pages 887-889, December.
    5. Mohammed Kharbach, 2009. "A Unidirectional Hotelling Model," Economics Bulletin, AccessEcon, vol. 29(3), pages 1814-1819.
    6. Anderson, Simon P & Neven, Damien J, 1991. "Cournot Competition Yields Spatial Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 793-808, November.
    7. Cancian, Maria & Bills, Angela & Bergstrom, Theodore, 1995. "Hotelling Location Problems with Directional Constraints: An Application to Television News Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 121-124, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Chia-Hung Sun, 2014. "Spatial Cournot Competition in a Linear City with Directional Delivery Constraints," The Japanese Economic Review, Japanese Economic Association, vol. 65(3), pages 344-374, September.

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    More about this item

    Keywords

    unidirectional; Hotelling; equilibrium; mill pricing; location;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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