Opening book details…
Can I read Utility function and location in the Hotelling game on EtoBox?
Utility function and location in the Hotelling game by Takanori Ago is a Economics, Econometrics and Finance article available to read on EtoBox.
What is Utility function and location in the Hotelling game about?
It is demonstrated herein that a slight expansion of the utility function in the duopolistic Hotelling game enables any symmetric location pair with respect to the center to be in equilibrium, which implies that any level of locational differentiation between the minimum Hotelling (Econ. J.39:41-57, 1929) and maximum D'Aspremont (Econom. 47:1145(Econom. 47: -1150(Econom. 47: , 1979) is obtained in one model. The location equilibrium is monotone with respect to the introduced parameter (k), while the equilibrium price and profits are not monotone (they are U-shaped). That is, the nearer the two firms are located, the higher their prices are set (with an upper limit) when k is sufficiently large. This counterintuitive phenomenon is interpreted as an example of strategic complementarity that is inherent in the Hotelling games.
Who reads Utility function and location in the Hotelling game?
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Takanori Ago
- Publisher
- Springer Science and Business Media LLC
- Published
- 2023
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)