The Principle of Minimum Differentiation Revisited: Return of the Median Voter *

Nobuyuki Hanaki, Emily Tanimura () and Nicolaas Vriend
Additional contact information
Emily Tanimura: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: We study a linear location model (Hotelling, 1929) in which n (with n ≥ 2) boundedly rational players follow (noisy) myopic best-reply behavior. We show through numerical and mathematical analysis that such players spend almost all the time clustered together near the center, re-establishing the " Principle of Minimum Differentiation " that had been discredited by equilibrium analyses. Thus, our analysis of the best-response dynamics shows that when considering market dynamics as well as their policy and welfare implications, it may be important to look beyond equilibrium analyses.

Keywords: Hotelling location model; Principle of Minimum Differentiation; Nash equilibrium; Best-response dynamics; Stochastic stability; Invariant measures (search for similar items in EconPapers)
Date: 2016-04
Note: View the original document on HAL open archive server: https://hal.science/hal-01312466
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-01312466/document (application/pdf)

Related works:
Journal Article: The Principle of Minimum Differentiation revisited: Return of the median voter (2019)
Working Paper: The Principle of Minimum Differentiation Revisited: Return of the Median Voter (2019)
Working Paper: The Principle of Minimum Differentiation Revisited: Return of the Median Voter (2019)
Working Paper: The Principle of Minimum Differentiation Revisited: Return of the Median Voter (2016)
Working Paper: The Principle of Minimum Differentiation Revisited: Return of the Median Voter * (2016)
Working Paper: The Principle of Minimum Differentiation Revisited: Return of the Median Voter (2016)
Working Paper: The Principle of Minimum Differentiation Revisited: Return of the Median Voter (2016)
Working Paper: The Principle of Minimum Differentiation Revisited: Return of the Median Voter (2016)
Working Paper: The Principle of Minimum Differentiation Revisited: Return of the Median Voter (2016)
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:hal:wpaper:hal-01312466

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().