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The Cartographer
Necessary and sufficient condition for equilibrium of the Hotelling model
July 14, 2019 Β· Declared Dead Β· π arXiv.org
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Authors
Satoshi Hayashi, Naoki Tsuge
arXiv ID
1907.06200
Category
econ.TH
Cross-listed
cs.IT
Citations
1
Venue
arXiv.org
Last Checked
3 months ago
Abstract
We study a model of vendors competing to sell a homogeneous product to customers spread evenly along a linear city. This model is based on Hotelling's celebrated paper in 1929. Our aim in this paper is to present a necessary and sufficient condition for the equilibrium. This yields a representation for the equilibrium. To achieve this, we first formulate the model mathematically. Next, we prove that the condition holds if and only if vendors are equilibrium.
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