Minimal and maximal product differentiation in Hotelling's duopoly

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Minimal and Maximal Product Differentiation in Hotelling's Duopoly

Hotelling’s (1929) model of duopolistic competition ts re-examined. A family of utility functions is used which has as a special case Hotelling’s original utility function. In a two-stage location-price game it is shown that an equilibrium exists when the curvature of the utility functions in the space of characteristics is sufficiently high. The (subgame-perfect) equilibrium never exhibits min...

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ژورنال

عنوان ژورنال: Economics Letters

سال: 1986

ISSN: 0165-1765

DOI: 10.1016/0165-1765(86)90124-2