Different pricing policies in Hotelling’s duopoly model

Different pricing policies in Hotelling’s duopoly model

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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:
Keywords: location, optimization
Abstract:

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.

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