In this paper we consider a Hotelling model on the linear city, where the location is not a free good. We assume that firms play a location-cum-price game, and that the game is played into two steps. After the first step, in which the classical duopoly game is played, we suppose that in a second step a third firm enters the market and that the incumbents are allowed to react to this entry. In both steps firms have to face a cost for location, for which we consider two different cases.
Sequential Entry in Hotelling Model with Location Costs: A Three-Firm Case / Patri', Stefano; Armando, Sacco. - (2017), pp. 261-272. - SPRINGER OPTIMIZATION AND ITS APPLICATIONS.
Sequential Entry in Hotelling Model with Location Costs: A Three-Firm Case
Stefano PatrìCo-primo
Membro del Collaboration Group
;
2017
Abstract
In this paper we consider a Hotelling model on the linear city, where the location is not a free good. We assume that firms play a location-cum-price game, and that the game is played into two steps. After the first step, in which the classical duopoly game is played, we suppose that in a second step a third firm enters the market and that the incumbents are allowed to react to this entry. In both steps firms have to face a cost for location, for which we consider two different cases.| File | Dimensione | Formato | |
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Patrí_Sequentia-EntryIn-Hotelling_2017.pdf
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