A unidirectional Hotelling model revisited

Takeshi Ebina and Daisuke Shimizu ()
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Daisuke Shimizu: Faculty of Economics, Gakushuin University

Economics Bulletin, 2012, vol. 32, issue 4, 2870-2875

Abstract: We consider a two-stage location-price Hotelling model where the consumers can only buy from one direction, as presented by Kharbach (2009, Economics Bulletin). We show that the equilibrium outcome derived by Kharbach does not constitute a subgame perfect Nash equilibrium.

Keywords: unidirectional; Hotelling; equilibrium; mill pricing; location (search for similar items in EconPapers)
JEL-codes: L0 R3 (search for similar items in EconPapers)
Date: 2012-10-16
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