Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: http://hdl.handle.net/10419/175229
Autor:innen: 
Hanaki, Nobuyuki
Tanimura, Emily
Vriend, Nicolaas J.
Datum: 
2016
Schriftenreihe/Nr.: 
Working Paper No. 792
Verlag: 
Queen Mary University of London, School of Economics and Finance, London
Zusammenfassung: 
We study a linear location model (Hotelling, 1929) in which n (with n ≥ 2) boundedly rational players follow (noisy) myopic best-reply behavior. We show through numerical and mathematical analysis that such players spend almost all the time clustered together near the center, re-establishing the "Principle of Minimum Differentiation" that had been discredited by equilibrium analyses. Thus, our analysis of the best-response dynamics shows that when considering market dynamics as well as their policy and welfare implications, it may be important to look beyond equilibrium analyses.
Schlagwörter: 
Hotelling location model
Principle of Minimum Differentiation
Nash equilibrium
Best-response dynamics
Stochastic stability
Invariant measures
JEL: 
C72
D72
L13
R30
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
809.73 kB





Publikationen in EconStor sind urheberrechtlich geschützt.