Price Competition on Graphs

Arbeitspapier

This paper extends Hotelling's model of price competition with quadratic transportation costs from a line to graphs. I propose an algorithm to calculate firm-level demand for anygiven graph, conditional on prices and firm locations. These graph models of price competitionmay lead to spatial discontinuities in firm-level demand. I show that the existence resultof D'Aspremont et al. (1979) does not extend to simple star graphs and I conjecture thatthis non-existence result holds more generally for all graph models with two or more firmsthat cannot be reduced to a line or circle.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Tinbergen Institute Discussion Paper ; No. 10-126/1

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Market Structure, Firm Strategy, and Market Performance: General ; Size and Spatial Distributions of Regional Economic Activity
• Thema: spatial competition ; Hotelling ; graphs ; Hotelling-Modell ; Preiswettbewerb ; Nichtkooperatives Spiel ; Graphentheorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Soetevent, Adriaan R.
• Ereignis: Veröffentlichung
• (wer): Tinbergen Institute
• (wo): Amsterdam and Rotterdam
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/86894
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ