Article ID: | iaor19931023 |
Country: | Belgium |
Volume: | 33 |
Start Page Number: | 195 |
End Page Number: | 205 |
Publication Date: | Nov 1991 |
Journal: | Cahiers du Centre d'tudes de Recherche Oprationnelle |
Authors: | Eiselt H.A. |
Keywords: | location, optimization |
The paper examines a version of the Hotelling model on a linear market. Here, one of the facilities uses uniform delivered prices whereas the other applies mill pricing. It is shown that an equilibrium with positive profit for both competitors exists. This equilibrium is then compared to social optima with minisum and minimax objective.