Survival at the center--The stability of minimum differentiation

Burkhard Hehenkamp and Achim Wambach

Journal of Economic Behavior & Organization, 2010, vol. 76, issue 3, 853-858

Abstract: Abstract We model a Hotelling market with multidimensional product differentiation in an evolutionary framework. Both evolutionary stability (in the sense of Schaffer, 1989) and stochastic stability (following [Kandori et al., 1993] and [Young, 1993]) are analyzed. It is shown that firms move towards the center in product space, i.e. a "principle of minimum differentiation" on all dimensions of the product space applies.

Keywords: Hotelling; Evolutionary; game; theory; Product; differentiation; Location; choice (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (13)

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Working Paper: Survival at the Center - The Stability of Minimum Differentiation (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:76:y:2010:i:3:p:853-858

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