|
|
|
|
||||
|
||||
The Importance of the Distribution of Consumers in Horizontal Product DifferentiationAntoni Calvo-ArmengolAutonomous University of Barcelona - Department of Economics; Institute for the Study of Labor (IZA) Yves ZenouStockholm University; Research Institute of Industrial Economics (IUI); Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR) October 2001 CEPR Discussion Paper No. 3031 Abstract: This Paper examines the importance of the distribution of consumers in Hotelling's circle on the comparison between the optimal and the market equilibrium levels of diversity. It finds that when most consumers are located very close to the firms, the result of Salop that the equilibrium number of firms is larger than the optimal one (surplus maximizing) can be reversed.
Number of Pages in PDF File: 17 Keywords: Hotelling, market equilibrium, social optimism JEL Classification: D43, L12, R32 working papers seriesDate posted: November 15, 2001Suggested CitationContact Information
|
|
||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo7 in 0.829 seconds
Add to Cart
