A Continuous Logit Hotelling Model with Endogenous Locations of Consumers

Beitrag in einer Fachzeitschrift


Details zur Publikation

Autor(en): Wrede M
Zeitschrift: Economics letters
Verlag: Elsevier
Jahr der Veröffentlichung: 2015
Band: 126
Seitenbereich: 81-83
ISSN: 0165-1765
Sprache: Englisch


Abstract


This paper analyzes location and price choices of firms and subsequent location choices of consumers in a linear city model when consumers have different perceptions of locations and firms. The study utilizes a continuous logit model to describe consumers’ location and supplier choices. A unique subgame perfect Nash equilibrium exists where firms make positive profits and the minimum differentiation principle applies. For identical firms, prices converge to marginal costs as heterogeneity of consumers’ perceptions disappears.



FAU-Autoren / FAU-Herausgeber

Wrede, Matthias Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Sozialpolitik


Zitierweisen

APA:
Wrede, M. (2015). A Continuous Logit Hotelling Model with Endogenous Locations of Consumers. Economics letters, 126, 81-83. https://dx.doi.org/10.1016/j.econlet.2014.11.024

MLA:
Wrede, Matthias. "A Continuous Logit Hotelling Model with Endogenous Locations of Consumers." Economics letters 126 (2015): 81-83.

BibTeX: 

Zuletzt aktualisiert 2018-11-08 um 01:59