Equilibrium existence in the Hotelling model with convex production costs

B-Tier
Journal: Regional Science and Urban Economics
Year: 2020
Volume: 84
Issue: C

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We revisit the spatial duopoly model à la Hotelling (1929), to show that, provided the parameter scaling marginal cost is sufficiently high, quadratic production costs guarantee equilibrium existence in presence of linear transportation costs and a uniform distribution, with minimum product differentiation and no undercutting. We also discuss the conditions under which partial coverage arises. Finally, we extend the duopoly game to generalise the condition for the existence of the pure-strategy equilibrium to a class of convex production cost functions.

Technical Details

RePEc Handle
repec:eee:regeco:v:84:y:2020:i:c:s0166046220302532
Journal Field
Urban
Author Count
2
Added to Database
2026-01-25