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Zoekopdracht: faculteit: "FEB" en publicatiejaar: "2010"

AuteurA.R. Soetevent
TitelPrice competition on graphs
UitgeverTinbergen Institute
PlaatsAmsterdam
Jaar2010
Pagina's45
SerietitelTinbergen Institute discussion paper
SerienummerTI 2010-126/1
FaculteitFaculteit Economie en Bedrijfskunde
Instituut/afd.FEB: Amsterdam School of Economics Research Institute (ASE-RI)
SamenvattingThis 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 any given graph, conditional on prices and firm locations. One feature of graph models of price competition is that spatial discontinuities in firm-level demand may occur. I show that the existence result of D'Aspremont et al. (1979) does not extend to simple star graphs. I conjecture that this non-existence result holds more generally for all graph models with two or more firms that cannot be reduced to a line or circle.
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