Alberto Pinto (http://www.liaad.up.pt/area/aapinto/) – Hotelling game on networks

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Alberto Pinto (http://www.liaad.up.pt/area/aapinto/) – Hotelling game on networks

24 mars

We develop a theoretical framework to study the location-price competition in a Hotelling-type network game, extending the Hotelling model with linear transportation costs from a line (city) to a network (town). We show the existence of a pure Nash equilibrium price if, and only if, some explicit conditions on the production costs and on the network structure hold. Furthermore, we prove that the local optimal localization of the firms are at the cross-roads of the town.

 

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Date :
24 mars