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Models a la Lancaster and a la Hotelling: when they are the same

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  • Peitz, Martin

Abstract

Consumer behavior in differentiated product markets can be specified following the Lancastriancharacteristics approach or following Hotelling´s approach of spatial competition. In the case ofunit demand I present a class of models of (heterogeneous) consumer behavior which can bewritten as models à la Lancaster as well as models à la Hotelling.
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  • Peitz, Martin, 1997. "Models a la Lancaster and a la Hotelling: when they are the same," Economics Letters, Elsevier, vol. 54(2), pages 147-154, February.
  • Handle: RePEc:eee:ecolet:v:54:y:1997:i:2:p:147-154
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    References listed on IDEAS

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    1. Friedman,James, 1983. "Oligopoly Theory," Cambridge Books, Cambridge University Press, number 9780521282444, December.
    2. labbe, M. & Peeters, D. & Thisse, J.F., 1992. "Location on Networks," Papers 9216, Universite Libre de Bruxelles - C.E.M.E..
      • LABBE, Martine & PEETERS, Dominique & THISSE, Jacques-François, 1993. "Location on Networks," CORE Discussion Papers 1993040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Caplin, Andrew & Nalebuff, Barry, 1991. "Aggregation and Imperfect Competition: On the Existence of Equilibrium," Econometrica, Econometric Society, vol. 59(1), pages 25-59, January.
    4. Gabszewicz, Jean Jaskold & Thisse, Jacques-Francois, 1986. "On the Nature of Competition with Differentiated Products," Economic Journal, Royal Economic Society, vol. 96(381), pages 160-172, March.
    5. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    6. repec:crs:wpaper:8801 is not listed on IDEAS
    7. W. M. Gorman, 1980. "A Possible Procedure for Analysing Quality Differentials in the Egg Market," Review of Economic Studies, Oxford University Press, vol. 47(5), pages 843-856.
    8. John R. Hauser, 1988. "Note—Competitive Price and Positioning Strategies," Marketing Science, INFORMS, vol. 7(1), pages 76-91.
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    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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