On hotelling's competition with general purpose products

dc.creator	Troncoso Valverde, Christian
dc.creator	Robert, Jacques
dc.date	2005-05-27T22:32:44Z
dc.date	2005-05-27T22:32:44Z
dc.date	2004
dc.date.accessioned	2017-03-07T14:31:20Z
dc.date.available	2017-03-07T14:31:20Z
dc.identifier	http://dspace.utalca.cl/handle/1950/1153
dc.identifier.uri	http://repositorioslatinoamericanos.uchile.cl/handle/2250/368467
dc.description	18 p.
dc.description	This paper extends the traditional Hotelling’s model of spatial competition by allowing firms to choose the degree of general purposeness of their products before they compete in prices. The degree of general purposeness is approximated by endogenizing the per–unit transportation cost coefficients. The game presents a continuum of perfect Nash equilibria featuring no price competition. In equilibrium, firms behave as ‘specialist’ by choosing high transportation cost coefficients. This allows them to extract all the marginal consumer’s rent and to perfectly segment the market. Moreover, market is entirely served by both firms regardless the value of the consumer’s reservation price.
dc.format	941840 bytes
dc.format	application/pdf
dc.language	es
dc.publisher	Universidad de Talca (Chile). Facultad de Ciencias Empresariales
dc.relation	Working Paper Series;Año 2, no. 3
dc.subject	Spatial competition, general purpose products, differentiated products.
dc.subject	JEL Classification: L11, L13, D43.
dc.title	On hotelling's competition with general purpose products
dc.type	Artículos de revistas