Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/29564 
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dc.contributor.authorGu, Yiquanen
dc.contributor.authorWenzel, Tobiasen
dc.date.accessioned2009-11-09-
dc.date.accessioned2010-01-13T14:02:07Z-
dc.date.available2010-01-13T14:02:07Z-
dc.date.issued2009-
dc.identifier.urihttp://hdl.handle.net/10419/29564-
dc.description.abstractThis paper explores the implications of price-dependent demand in spatial models of product differentiation. We introduce consumers with a quasi-linear utility function in the framework of the Salop (1979) model. We show that the so-called excess entry theorem relies critically on the assumption of completely inelastic demand. Our model is able to produce excessive, insufficient, or optimal product variety. A proof for the existence and uniqueness of symmetric equilibrium when price elasticity of demand is increasing in price is also provided.en
dc.language.isoengen
dc.publisher|aFriedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW) |cNürnbergen
dc.relation.ispartofseries|aIWQW Discussion Papers |x03/2009en
dc.subject.jelL11en
dc.subject.jelL13en
dc.subject.ddc330en
dc.subject.keywordDemand elasticityen
dc.subject.keywordSpatial modelsen
dc.subject.keywordExcess entry theoremen
dc.subject.stwProduktdifferenzierungen
dc.subject.stwMonopolistischer Wettbewerben
dc.subject.stwPreiselastizitäten
dc.subject.stwFixkostenen
dc.subject.stwHotelling Modellen
dc.subject.stwTheorieen
dc.titleProduct variety, price elasticity of demand and fixed cost in spatial models-
dc.type|aWorking Paperen
dc.identifier.ppn61250283Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:iwqwdp:032009en

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