A Note on the Neglected Behavioral Aspects of the Hotelling Game

  • Iván Barreda Tarrazona, Aurora Garćıa-Gallego, +5 authors Reinhard Selten
  • Published 2006

Abstract

In a discrete location and pricing version of the Hotelling game we address some neglected behavioral aspects of the famous product differentiation model. The minimum differentiation result gains ground under specific behavioral assumptions. Alternatively, both maximum and intermediate differentiation may emerge. JEL classification: L13, C91. 

6 Figures and Tables