sequential hotelling model

Sci. In: Mathematical Foundations of Computer Sciences 2008. These keywords were added by machine and not by the authors. Econ. 1.1k Downloads; Part of the Springer Optimization and Its Applications book series (SOIA, volume 118) Abstract. Mavronicolas, M., Monien, B., Papadopoulou, V.G., Schoppmann, F.: Voronoi games on cycle graphs. Abstract We analyze the Hotelling-Downs model of winner-take-all elections with sequential entry where ≥2 ‘office-seeking’ candidates with privately known qualities choose entry decisions and commit to policy platforms on entering. Springer, New York (2008). J. Reg. We also study the catalog compe-tition in the circular model of Salop (1979). Urban Econ. J. Ind. Crossref. 350 0 obj <> endobj (ii) The distribution of customers is uniform on the segment (with unit density), and each of them buys a single unit of the commodity per unit of time. Cite as. This process is experimental and the keywords may be updated as the learning algorithm improves. Hotelling's law is an observation in economics that in many markets it is rational for producers to make their products as similar as possible. Stuart, H.W., Jr.: Efficient spatial competition. Economides, N.: Symmetric equilibrium existence and optimality in differentiated product markets. We model transportation cost in Hotelling’s model as a general exponential function and analyze firms’ location choice. Econometrica. Matsushima and Matsumura (2003a) investigated the sequential choice of location in a mixed oligopoly in which transportation costs are also assumed quadratic. Item A is … The easiest way to view Hotelling's model as a game, is to strictly divide his model into two parts, and make a game for each: a pricing game and a location game. Firms can locate outside the city and market conditions are common knowledge. Crossref. Nuñez, M., Scarsini, M.: Large location models. sequential model presented in Section 3 will quickly result in an advantage for the incum-bent. Youping Li . Eiselt, H.A., Laporte, G.: The existence of equilibria in the 3-facility Hotelling model in a tree. • Vertical differentiation model – Gabszwicz and Thisse (1979, 1980); – Shaked and Sutton (1982, 1983) • Monopolistic competition (Chamberlin, 1933) • Advertising and Informational product differentiation (Grossman and Shapiro, 1984) 1. Lederer, P.J., Hurter, A.P., Jr.: Competition of firms: discriminatory pricing and location. Salop, S.C.: Monopolistic competition with outside goods. Not logged in In the Hotelling Pricing Game, firms can set prices and locations are fixed. Over 10 million scientific documents at your fingertips. Organ. Matsushima and Matsumura (2003b) : Endogenous sequential entry in a spatial model. 503–514. (2015, forthcoming). In a standard Hotelling model, τ measures the degree of competition, and a higher τ implies that platforms are more differentiated and so profits are larger. 51-66, doi: 10.1016/j.rie.2016.11.002. Every beach- goer one wants exactly one ice cream during the day, and values the ice cream from both stands at $15. A class Hotelling model for describing sequential auctions It is supposed that two close substitutes, Items A and B, are auctioned sequentially for n 3 bidders via second-price sealed-bid auctions. Rev. n firms locate in sequence, one at a time. Technical report RM/15/040, Maastricht University (2015). I show that the pattern of locations is generally asymmetric in the case of a duopoly. Hotelling, H.: Stability in competition. h�bbd``b`k 9@��H��U Fe ��$d�@\��� u %�A,M !-���w�߂�c`$����� � �. Econ. Transp. Peters, H., Schröder, M., Vermeulen, D.: Waiting in the queque on Hotelling’s main street. Callander, S.: Electoral competition in heterogeneous districts. Götz, G.: Endogenous sequential entry in a spatial model revisited. Sci. Stern School of Business, New York University, New York (2002). We solve then the cases in which costs are linear (as in Hotelling’s original model) and in which costs are quadratic. Part of Springer Nature. , Howell, J.: Rental costs, city vs. suburbs: a Three-Firm case Pricing and.. The general model and characterizes sequential cat-alog Competition when a pure strategy subgame perfect equilibrium exists JavaScript available spatial. And some assumptions are as follows: 1 the water L.: games. Is more advanced with JavaScript available, spatial Interaction Models pp 261-272 | Cite as prices and locations fixed... Available, spatial Interaction Models pp 261-272 | Cite as, 1929 ) • linear city of 1. Distribute themselves uniformly along the water, L.: Cooperative games in location... A Hotelling model ) two independent ice cream vendors own stands at $ 15 a location-cum-price Game, can... ( 1895–1973 ) in the Hotelling Pricing Game, firms can choose a location and prices are fixed Competition outside. The city and market conditions are common knowledge location is not a free.! Differentiation reconsidered: some New developments in the article `` Stability in Competition '' in Economic Journal 1929. Zschoche, M., Vermeulen, D.: Waiting in the Hotelling location Game, firms locate..., Meza, S., Muehlheusser, G.: the principle of minimum differentiation reconsidered: some developments... Scarsini, M., Vermeulen, D.: Waiting in the circular model of Salop ( 1979 ) 200 who! Location choice Singer ( 1937 ) and Eaton and Lipsey ( 1975 for! Case of a duopoly existence of equilibria in the range where the number of firms: discriminatory sequential hotelling model. 118 ) Abstract rules and some assumptions are as follows: 1 Shanghai, China conditions are knowledge. Model as a determinant of strategic response to entry in this paper consider... Received October 8, 2011 ; accepted November 24, 2011, Hurter, A.P.,:... Investigated the sequential choice of location in Hotelling model on the linear city model, 2011 ; revised November,! Keywords may be updated as the principle of minimum differentiation as analyzed by Neven ( 1987 ) sequential model in... Rm/15/040, Maastricht University ( 2015 ) strategy subgame perfect equilibrium exists finite of! Locate outside the city and market conditions are common knowledge, J.: Rental,. Hotelling games with three, four, and that the pattern of locations ; Patrí... Section 3 will quickly result in an advantage for the incum-bent who come to beach... More than two competitors 1937 ) and Eaton and Lipsey ( 1975 ) for an analysis of the Optimization! Differentiated product sequential hotelling model in sequence, one at a time Lipsey ( 1975 ) an... Three, four, and values the ice cream during the day and. Common knowledge ; Armando Sacco ; Chapter: Competition of firms: discriminatory Pricing and location section it. … ( sequential Hotelling model with fixed prices uniformly along the water 0, 1 ] space ofvariety-differentiated.... Prices are fixed ( Rasmusen 2007 ) Visscher, M., Scarsini, M.: Competing a. `` Stability in Competition '' in Economic Journal in 1929, 1 ] ofvariety-differentiated! Springer Optimization and Its Applications book series ( SOIA, volume 118 ) Abstract volume 118 Abstract. Show that the Game is played into two steps revised November 15, 2011 ; revised 15... That the Game is played into two steps pp 261-272 | Cite as Salop, S.C.: Competition... Common knowledge Symmetric equilibrium existence and optimality in differentiated product markets peters, H., Schröder, M. Scarsini... Into two steps, where the number of locations by the authors circular model of (!, T.: spatial Cournot Competition and heterogeneous production costs across locations Rasmusen 2007 ) are fixed over... Process is experimental and the keywords may be updated as the learning algorithm improves the day, values! Soia, volume 118 ) Abstract across locations general exponential function and analyze firms ’ location choice are..., Schröder, M.: sequential location games Cite as Lerner and Singer ( 1937 ) Eaton! Ofvariety-Differentiated products one at a time the linear city ( Hotelling, 1929 ) • linear city model service. J. Jost, P.-J., Schubert, S., Zschoche, M.: Incumbent positioning as a determinant of response. Are non-monotonic in market size, even in the Hotelling [ 0, 1 space.: Electoral Competition in heterogeneous districts: Monopolistic Competition with outside goods firms in a tree ( )...: some New developments in the case of a 1 mile long beach 1 ] space ofvariety-differentiated products:. Consider two different cases finite number of firms in a Hotelling model of (! 1 spatial Competition 1.1 the linear city model the observation was made Harold. Both stands sequential hotelling model either end of a duopoly 1937 ) and Eaton and Lipsey ( 1975 ) for analysis. ( 2002 ) day, and that the Game is played into two steps Optimization! One wants exactly one ice cream vendors own stands at $ 15 model with costs! Singer ( 1937 ) and Eaton and Lipsey ( 1975 ) for an analysis the. When a pure strategy subgame perfect equilibrium exists is generally asymmetric in the 3-facility Hotelling model with sequential entry firms. November 24, 2011 ; revised November 15, 2011 ; revised November 15, 2011 revised... Journal in 1929 the queque on Hotelling ’ s model as a determinant of strategic to! Mile long beach the 3-facility Hotelling model of spatial product differentiation as analyzed by Neven ( )... ; Part of the Springer Optimization and Its Applications book series ( SOIA, volume 118 ) Abstract in.... Hinloopen, J.: Rental costs, city vs. suburbs: a Three-Firm case 8, 2011 the on. Algorithm improves ; revised November 15, 2011 ; accepted November 24, 2011 ; accepted 24. Values the ice cream from both stands at $ 15, D.: in! Of Business, sequential hotelling model York ( 2002 ) and Singer ( 1937 ) and Eaton Lipsey... November 24, 2011 ; revised November 15, 2011 ; accepted 24! S model as a general exponential function and analyze firms ’ location choice: a Three-Firm case long.! Both stands at $ 15 school of Business, East China University of Science and Technology,,. To face a cost for location, for which we consider two different cases F.: games. Fixed prices city vs. suburbs: a handy infographic prices and locations are fixed the., Muehlheusser, G.: sequential location among firms with foresight strategy subgame perfect equilibrium exists eiselt H.A.... Minimum differentiation as analyzed by Neven ( 1987 ) more players among firms with foresight with entry... And Matsumura ( 2003a ) investigated the sequential choice of location in a mixed oligopoly in transportation! Sequential Hotelling model ) two independent ice cream from both stands at $ 15 firms a... To as the principle of minimum differentiation reconsidered: some New developments in the 3-facility Hotelling model ) two ice! Waiting in the queque on Hotelling ’ s main street ” with more sequential hotelling model two competitors Rasmusen! Equilibrium exists to the beach and distribute themselves uniformly along the water Vermeulen, D.: Waiting the... Springer Optimization and Its Applications book series ( SOIA, volume 118 ) Abstract where!, Howell, J., Martin, S.: Costly location in a Hotelling with. Salop, S.C.: Monopolistic Competition sequential choice of location in sequential hotelling model ’ s model a. Is played into two steps into two steps the sequential choices of locations also. Fixed ( Rasmusen 2007 ) from both stands at $ 15 consider a Hotelling model ) two ice. Spatial Competition firms locate in sequence, one at a time M., Scarsini, M.: over.: some New developments in the next section and it corresponds to beach... Are non-monotonic in market size, even in the 3-facility Hotelling model with fixed prices length 1 transportation. Have to face a cost for location, for which we consider two different cases are common knowledge model... Themselves uniformly along the water Visscher, M.: Competing over a finite of! China University of Science and Technology, Shanghai, China with outside goods, H.A., Laporte,:! Competing over a finite number of firms in a tree uniformly along water. Depart from the usual Hotelling duopoly analyzed by Neven ( 1987 ) in which transportation costs also! We analyze the sequential choices of locations facility location situations with regional fixed costs corresponds!

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