Abstract
Existence problems have been pervasive in the economics literature on horizontal product differentiation. Adding a directional constraint to a standard Hotelling location model leads to a general result of non-existence of a pure strategy Nash equilibrium. Here we present a slightly different model where allowing for preferences over broadcasters, independent of arrival time at home, recovers existence of pure strategy Nash equilibria (although a mixed strategy equilibrium also exists).
| Original language | English |
|---|---|
| Journal | Economics Bulletin |
| Volume | 12 |
| Issue number | 1 |
| Publication status | Published - 15 Jan 2008 |
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