Minimal and Maximal Product Differentiation in Hotelling's Duopoly
نویسنده
چکیده
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 minimum product differentiation. On the other hand, not all equilibria are at maximal product differentiation.
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تاریخ انتشار 1985