Price competition on graphs
| Authors |
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|---|---|
| Publication date | 02-2018 |
| Journal | Journal of Economic Behavior and Organization |
| Volume | Issue number | 146 |
| Pages (from-to) | 161-179 |
| Number of pages | 19 |
| Organisations |
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| Abstract |
This paper extends Hotelling's model of price competition with quadratic transportation costs from a line to graphs. We derive an algorithm to calculate firm-level demand for any given graph, conditional on prices and firm locations. These graph models of price competition may lead to spatial discontinuities in firm-level demand. We show that the existence result of d'Aspremont et al. (1979) does not extend to graphs that cannot be reduced to a line or circle. |
| Document type | Article |
| Note | With supplementary file |
| Language | English |
| Published at | https://doi.org/10.1016/j.jebo.2017.12.011 |
| Other links | https://www.scopus.com/pages/publications/85044326591 |
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