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Stability in Competition

In: The Collected Economics Articles of Harold Hotelling

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  • Harold Hotelling

    (Stanford University)

Abstract

After the work of the late Professor F. Y. Edgeworth one may doubt that anything further can be said on the theory of competition among a small number of entrepreneurs. However, one important feature of actual business seems until recently to have escaped scrutiny. This is the fact that of all the purchasers of a commodity, some buy from one seller, some from another, in spite of moderate differences of price. If the purveyor of an article gradually increases his price while his rivals keep theirs fixed, the diminution in volume of his sales will in general take place continuously rather than in the abrupt way which has tacitly been assumed.

Suggested Citation

  • Harold Hotelling, 1990. "Stability in Competition," Springer Books, in: Adrian C. Darnell (ed.), The Collected Economics Articles of Harold Hotelling, pages 50-63, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4613-8905-7_4
    DOI: 10.1007/978-1-4613-8905-7_4
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