SSRN Home Search and Download Papers Browse Abstract and Paper Submission Subscribe to Networks View Briefcase Top Papers Top Authors Top Institutions

 

Abstract

 
 

References (15)

Beta

 
 

Citations (3)

Beta

 


 



Location, Location, Location! A Classroom Demonstration of the Hotelling Model

Lisa R. Anderson
College of William and Mary - Department of Economics

Beth A. Freeborn
College of William and Mary

Jessica Holmes
Middlebury College

Mark Jeffreys
Utah Valley University

Daniel Lass
University of Massachusetts at Amherst - College of Natural Resources & the Environment - Department of Resource Economics

John C Soper
John Carroll University


December 2006


Abstract:     
This paper outlines a classroom experiment that complements the standard theoretical discussion of Hotelling's (1929) spatial competition model. The exercises will provide students with a deeper understanding of the intuition behind competitive clustering, resolving the Bertrand paradox, and product positioning. Students act as street vendors operating within a "linear city." Each student chooses the most profitable location, taking into account the locations of competitors and the transportation costs of customers. Other treatments include choosing price given location and a two-stage model of location and price. The experiment can be implemented in any size class, with very little preparation. It is well-suited for courses in microeconomics, industrial organization, game theory, experimental economics, and public choice economics, and can also be incorporated into political science courses.

JEL Classifications: A22, C22, C90, D21, L1

Working Paper Series

Date posted: February 08, 2007 ; Last revised: February 08, 2007

Suggested Citation

Anderson, Lisa R., Freeborn, Beth A., Holmes, Jessica, Jeffreys, Mark, Lass, Daniel and Soper, John C, Location, Location, Location! A Classroom Demonstration of the Hotelling Model (December 2006). Available at SSRN: http://ssrn.com/abstract=961889


Export to: Export Citation What's this?

Contact Information

Lisa R. Anderson (Contact Author)
College of William and Mary - Department of Economics ( email )
Williamsburg, VA 23187-8795
United States
Beth A. Freeborn
College of William and Mary ( email )
P.O. Box 8795
Williamsburg, VA 23185
United States
Jessica Holmes
Middlebury College ( email )
Middlebury, VT 05753
Mark Jeffreys
Utah Valley University ( email )
800 West University Parkway
Orem, UT 84058-5999
United States
Daniel Lass
University of Massachusetts at Amherst - College of Natural Resources & the Environment - Department of Resource Economics ( email )
Stockbridge Hall
80 Campus Center Way
Amherst, MA 01003-9246
United States
413-545-1501 (Phone)
413-545-5853 (Fax)
Jack Soper
John Carroll University ( email )
University Heights, OH 44118
United States
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 591
Downloads: 139
Download Rank: 65,424
References: 15
Citations: 3

© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was served by apollob 3 in 0.515 seconds.