All Stackelberg Location Equilibria in the Hotelling's Duopoly Model on a Tree with Parametric Prices

María García Pérez () and Blas Pelegrín ()

Annals of Operations Research, 2003, vol. 122, issue 1, 177-192

Abstract: The sequential Hotelling's duopoly model on a tree was studied by Eiselt (1992), who developed conditions for the existence of location equilibria when location decisions are nodes and prices are parametric. In this paper, this competition model is also analyzed, but considering that locations for the two firms can be any pair of points on the tree, nodes or points in the edges. First, a condition is given under which both the leader and the follower get a positive profit. In this setting, the problem of finding optimal locations for each of them is studied with different and equal prices. In both cases, the set of optimal locations for the follower is generated for any location of the leader as well as the set of optimal locations for the leader. As a consequence the entire set of Stackelberg solutions to this competition model is obtained. Copyright Kluwer Academic Publishers 2003

Keywords: competitive location; duopoly; fixed prices; Stackelberg equilibrium; trees (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1023/A:1026150608051 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:122:y:2003:i:1:p:177-192:10.1023/a:1026150608051

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1023/A:1026150608051

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().