General distribution of consumers in pure Hotelling games

DOI10.1007/S00182-018-0648-4zbMATH Open1411.91140arXiv1602.04851OpenAlexW2274609227WikidataQ128986633 ScholiaQ128986633MaRDI QIDQ2424232FDOQ2424232

Authors: Gaëtan Fournier 

Publication date: 24 June 2019

Published in: International Journal of Game Theory (Search for Journal in Brave)

Abstract: A pure Hotelling game is a competition between a finite number of players who select simultaneously a location in order to attract as many consumers as possible. In this paper, we study the case of a general distribution of consumers on a network generated by a metric graph. Because players do not compete on price, the continuum of consumers shop at the closest player's location. Under regularity hypothesis on the distribution we prove the existence of an epsilon-equilibrium in pure strategies and we construct it, provided that the number of players is larger than a lower bound.

Full work available at URL: https://arxiv.org/abs/1602.04851

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zbMATH Keywords

approximate Nash equilibrialarge gamespure equilibriaHotelling gameslocation games on networks

Mathematics Subject Classification ID

Games with infinitely many players (91A07) Games involving graphs (91A43) Spatial models in economics (91B72)

Cites Work

• Competition of Firms: Discriminatory Pricing and Location
• The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition
• The Nature of Equilibrium in a Location Model
• Location, location, location
• Hotelling's location model with negative network externalities
• On Hotelling's competition with non-uniform customer distributions
• Large spatial competition
• Location Games on Networks: Existence and Efficiency of Equilibria

Cited In (11)

• Local market structure in a Hotelling town
• Hotelling games with random tolerance intervals
• Equilibria in unidirectional spatial models
• Location games with references
• Large spatial competition
• Nash equilibrium structure of Cox process Hotelling games
• Spatial competition on 2-dimensional markets and networks when consumers don't always go to the closest firm
• The continuous Hotelling pure location game with elastic demand revisited
• On the existence and social optimality of equilibria in a Hotelling game with uncertain demand and linear-quadratic costs
• Discrete hotelling pure location games: potentials and equilibria
• Hotelling competition and the gamma distribution

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