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The globe and the circle

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  • Kaushik Basu

    (Cornell University)

Abstract

The geometry of the line and the circle has been used in economics for a long time to understand location choice and political positioning in democratic polity. This paper draws on some elementary ideas from geometry and game theory to extend some of the analysis to beyond lines and circles to the globe or the sphere. In the spirit of recreational geometry the paper is focused on demonstrating some abstract results concerning Nash equilibria on the globe. It is hoped that this will help us understand better the robustness of median voter theorems and why stores position themselves the way they do.

Suggested Citation

  • Kaushik Basu, 2017. "The globe and the circle," Indian Economic Review, Springer, vol. 52(1), pages 93-101, December.
    • Handle: RePEc:spr:inecre:v:52:y:2017:i:1:d:10.1007_s41775-017-0007-6
    DOI: 10.1007/s41775-017-0007-6
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    References listed on IDEAS

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    1. Martin J. Osborne, 1995. "Spatial Models of Political Competition under Plurality Rule: A Survey of Some Explanations of the Number of Candidates and the Positions They Take," Canadian Journal of Economics, Canadian Economics Association, vol. 28(2), pages 261-301, May.
    2. Gulati, Namrata & Ray, Tridip, 2016. "Inequality, neighbourhoods and welfare of the poor," Journal of Development Economics, Elsevier, vol. 122(C), pages 214-228.
    3. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    4. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-1150, September.
    5. Basu,Kaushik & Mitra,Tapan, 2016. "Nash on a rotary : two theorems with implications for electoral politics," Policy Research Working Paper Series 7701, The World Bank.
    6. Pal, Debashis, 1998. "Does Cournot competition yield spatial agglomeration?," Economics Letters, Elsevier, vol. 60(1), pages 49-53, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Spatial economics; Electoral democracy; Spheres; Circles; Nash equilibrium;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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