Multiproduct Firms in Hotelling’s Spatial Competition
University of Tokyo - Faculty of Economics
Journal of Economics & Management Strategy, Vol. 21, Issue 2, pp. 445-467, 2012
Oligopoly models are usually analyzed in the context of two firms, anticipating that market outcomes would be qualitatively similar in the case of three or more firms. The literature on Hotelling’s location‐then‐price competition is not an exception. In this paper, we show that the main finding of brand bunching in Hotelling’s duopoly no longer holds once three or more firms are allowed to enter the market. That is, in oligopoly with three or more firms, firms proliferate brands.
Number of Pages in PDF File: 23Accepted Paper Series
Date posted: April 26, 2012
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