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Hotelling's "ice cream dealers" with elastic demand
Umeå University, Faculty of Social Sciences, Department of Economics.
2002 (English)In: The annals of regional science, ISSN 0570-1864, Vol. 36, no 1, 1-17 p.Article in journal (Refereed) Published
Abstract [en]

This article reconsiders the Hotelling duopoly model of 1929, but under elastic demand, more precisely a linear demand function. The equilibrium state for identical firms is fully described, and the intervals of different regimes: independent monopolies, genuine duopoly competition, and price cutting wars, are specified in terms of one single compound parameter (maximum price, minus marginal production cost, divided by transportation cost).

Place, publisher, year, edition, pages
2002. Vol. 36, no 1, 1-17 p.
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URN: urn:nbn:se:umu:diva-24525DOI: 10.1007/s001680100062OAI: diva2:226633
Available from: 2009-07-02 Created: 2009-07-02

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Puu, Tönu
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