Please use this identifier to cite or link to this item: https://hdl.handle.net/10216/98231
Author(s): Alberto A. Pinto
Telmo Parreira
Title: A Hotelling-Type Network
Issue Date: 2011
Abstract: This paper develops a theoretical framework to study spatial price competition in a Hotelling-type network game. Each firm i is represented by a node of degree k i , where k i is the number of firm i's direct competitors (neighbors). We investigate price competition á la Hotelling with complete and incomplete information about the network structure. The goal is to investigate the effects of the network structure and of the uncertainty on firms' prices and profits. We first analyze the benchmark case where each firm knows its own degree as well as the rivals' degree. Then, in order to understand the role of information in the price competition network, we also analyze the incomplete information case where each firm knows its type (i.e. number of connections) but not the competitors' type.
Description: This paper develops a theoretical framework to study spatial price competition in a Hotelling-type network game. Each firm i is represented by a node of degree k i , where k i is the number of firm i's direct competitors (neighbors). We investigate price competition á la Hotelling with complete and incomplete information about the network structure. The goal is to investigate the effects of the network structure and of the uncertainty on firms' prices and profits. We first analyze the benchmark case where each firm knows its own degree as well as the rivals' degree. Then, in order to understand the role of information in the price competition network, we also analyze the incomplete information case where each firm knows its type (i.e. number of connections) but not the competitors' type.
Subject: Matemática
Mathematics
Scientific areas: Ciências exactas e naturais::Matemática
Natural sciences::Mathematics
URI: https://repositorio-aberto.up.pt/handle/10216/98231
Source: Dynamics, Games and Science I, DYNA 2008, in Honor of Maurício Peixoto and David Rand. Springer Proceedings in Mathematics
Document Type: Capítulo ou Parte de Livro
Rights: restrictedAccess
Appears in Collections:FCUP - Capítulo ou Parte de Livro

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