Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86894
Authors: 
Soetevent, Adriaan R.
Year of Publication: 
2010
Series/Report no.: 
Tinbergen Institute Discussion Paper 10-126/1
Abstract: 
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.
Subjects: 
spatial competition
Hotelling
graphs
JEL: 
D43
L10
R12
Document Type: 
Working Paper

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