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Hotelling model of price competition and product s

 
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 PostWysłany: Pon 8:19, 18 Kwi 2011    Temat postu: Hotelling model of price competition and product s Back to top

Hotelling model of price competition and product choice


Paper Keywords: Hotelling model of spatial differences in the linear city Abstract: is an oligopoly, product differentiation business strategy the central concept of competition, competition based on spatial differences in the perspective of the linear city model oligopoly price competition between the two-stage game, and the product choice. 1 Introduction finishing. product differentiation, refers to a competition within the industry production of similar products due to the physical properties of goods, marketing services, information provision, there are differences in consumer preferences, etc., resulting in incomplete between products alternative position 2 Hotelling model of price competition. in the Hotelling model, the length of a There are two companies or enterprises, they sell the same material goods. 2.1 Basic assumptions Let us assume that firm 1 is located in the n ≥ 0 point, the business is located in a b point 1, where 6> 0. Without loss of generality,[link widoczny dla zalogowanych], assume that a a a a 6 ≥ 0 (1 in business 2 business can substitute.) Each of the units of commodity cost C. Consumers pay the transportation costs per unit of length t of consumers with unit demand, that every consumer purchase of 1 or 0 units of goods. 2.2 Model and Solution business address as we have given to study the Nash equilibrium price is the price that P, D (p, P ) for the demand function, a 1,2. Assume that the two companies also choose the price P, P, another company a right of the S bit in both the consumer business is no different, as shown: demand function of the first is the company's own close to consumers between own half, and the third term represents the sensitivity of demand to price differences. profit function are: enterprise i to choose their own price P1, given P2, the two first order conditions are


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