Arbeitspapier
Dynamic Hotelling Duopoly with Linear Transportation Costs
I investigate a spatial duopoly model with linear transportation costs as a differential game where product differentiation is the result of firms' R&D investments. Two related results obtain, i.e., (i) the steady state R&D investment (product differentiation) is negatively (positively) related to the cost of capital and time discounting; and (ii) if time discounting and the cost of capital are suficiently high, the amount of differentiation observed in steady state is suficiently large to ensure the existence of a unique pure-strategy price equilibrium with prices above marginal cost.
- Sprache
-
Englisch
- Erschienen in
-
Series: Quaderni - Working Paper DSE ; No. 398
- Klassifikation
-
Wirtschaft
- Ereignis
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Geistige Schöpfung
- (wer)
-
Lambertini, Luca
- Ereignis
-
Veröffentlichung
- (wer)
-
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (wo)
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Bologna
- (wann)
-
2001
- DOI
-
doi:10.6092/unibo/amsacta/4903
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Lambertini, Luca
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Entstanden
- 2001