Torrisi, Gianpiero (2008): The model of the linear city under a triangular distribution of consumers: an empirical analysis on price and location of beverage kiosks in Catania.
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This paper presents a model of oligopolistic competition under horizontal differentiation of products and a triangular distribution of consumers. The triangular distribution aims to represent a case of concentration of consumers around the central location. The main result is that a good deal of differentiation among products is achieved also under such assumption concerning the consumers’ distribution. This means that the incentive to differentiate – to some extent - prevails on the incentive to the central location, although consumers are concentrated in the central location. The analysis on an original empirical case-study is presented, concerning the choice of beverage retails in a town. The empirical evidence is consistent with the theoretical model.
|Item Type:||MPRA Paper|
|Original Title:||The model of the linear city under a triangular distribution of consumers: an empirical analysis on price and location of beverage kiosks in Catania|
|Keywords:||Product differentiation; Hotelling; Empirical analysis|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C10 - General
C - Mathematical and Quantitative Methods > C0 - General > C00 - General
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C70 - General
|Depositing User:||Gianpiero Torrisi|
|Date Deposited:||13. Jan 2009 07:40|
|Last Modified:||15. Mar 2014 09:37|
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