Continuous Differentiation: Hotelling Revisits the Lab
نویسندگان
چکیده
We investigate experimentally the impact of continuous time on a four-player Hotelling location game. The static pure strategy Nash equilibrium (NE) consists of firms paired-up at the first and third quartiles of the linear city. In repeated simultaneous move games (discrete time grid), we fail to obtain convergence to this distinctive NE, as have previous studies. However, with asynchronous moves in continuous time treatments, the NE clearly emerges.
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