MORE ON HOTELLING STABILITY IN COMPETITION

Authors
KATS A
Citation
A. Kats, MORE ON HOTELLING STABILITY IN COMPETITION, International journal of industrial organization, 13(1), 1995, pp. 89-93
Citations number
7
Categorie Soggetti
Economics
Journal title
International journal of industrial organization → ACNP
ISSN journal
01677187
Volume
13
Issue
1
Year of publication
1995
Pages
89 - 93
Database
ISI
SICI code
0167-7187(1995)13:1<89:MOHSIC>2.0.ZU;2-T
Abstract
It is well known that Hotelling's model of spatial competition has no location-price equilibrium in pure strategies. The present paper studi es that model where the linear space is replaced by a one-dimensional bounded space without a boundary, i.e. a circle. It is shown that the modified model does have a subgame perfect equilibrium in pure strateg ies and that the 'equal distance' location pattern is an equilibrium.