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Product differentiation when consumers may choose not to buy: Hotelling's convergence result revisited

  • Karine Van-Der-Straeten

    (PSE - La plante et son environnement - CNRS : IFR87 - INRA - Institut National Agronomique Paris-Grignon - Université Paris Sud - Paris XI)

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    Nous étudions le modèle spatial de différentiation d'Hotelling, mais au lieu de supposer que le marché est couvert quelles que soient les localisations des deux firmes, nous supposons qu'il existe une distance maximale (éventuellement infinie) qu'un consommateur est prêt à parcourir pour acheter le bien. Cette généralisation apparemment anodine des hypothèses d'Hotelling modifie complètement les résultats : le principe de "différentiation minimale" d'Hotelling n'est plus vérifié en général. A l'équilibre, les firmes s'engagent dans un processus de différentiation maximale, intermédiaire ou minimale, selon la forme de la distribution des positions des consommateurs et cette distance critique qu'un consommateur est prêt à parcourir pour acquérir le bien.

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    Paper provided by HAL in its series Working Papers with number hal-00242963.

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    Date of creation: 2005
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    Handle: RePEc:hal:wpaper:hal-00242963
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    1. d'ASPREMONT, Claude & GABSZEWICZ, Jean J. & THISSE, Jacques-François, . "On Hotelling's "Stability in competition"," CORE Discussion Papers RP 385, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Osborne, Martin J & Pitchik, Carolyn, 1987. "Equilibrium in Hotelling's Model of Spatial Competition," Econometrica, Econometric Society, vol. 55(4), pages 911-22, July.
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