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- W2100864499 abstract "This paper extends the interval Hotelling model with quadratic transport costs to the n-player case. For a large set of locations including potential equilibrium configurations, we show for n > 2 that firms neither maximize differentiation - as in the duopoly model - nor minimize differentiation - as in the multifirm game with linear transport cost. Subgame perfect equilibria for games with up to nine players are characterized by a Ushaped price structure and interior corner firm locations. Results are driven by an asymmetry between firms. Interior firms are weaker competitors than their rivals at the corners. Increasing the number of firms shifts even more power to the corner firms. As a result, there is too much differentiation from the social perspective if n is less-than or equal to 3, while adding firms leads to a level of differentiation in equilibrium below the social optimum." @default.
- W2100864499 created "2016-06-24" @default.
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- W2100864499 date "2005-11-09" @default.
- W2100864499 modified "2023-09-23" @default.
- W2100864499 title "Hotelling Games with Three, Four, and More Players" @default.
- W2100864499 hasPublicationYear "2005" @default.
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