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dc.contributor.authorGray, Richarden_NZ
dc.identifier.citationGray, R. (2002, October). Differentiation on Main Street: Two topics in location theory (Dissertation, Bachelor of Commerce with Honours). Retrieved from
dc.description.abstractTwo topics are examined in the convex cost specification introduced by d'Aspremont et al. (1979) into the model of Hotelling (1929). The first topic introduces a finite reservation constraint and demonstrates that the maximal differentiation result of d'Aspremont et al. (1979) is a special case which holds only if the constraint is sufficiently high. The second topic demonstrates that the use of a convex cost function creates the existence of a unique subgame-perfect Nash equilibrium in pure-strategies with three firms in a finite linear interval, and so reconciles an outstanding theoretical anomaly. The welfare consequences of this equilibrium are considered. In a limited analysis the second topic also examines possible locational pre-emption strategies as a finite reservation constraint is introduced, suggesting that the reservation value of a product is perhaps relevant in a firm's ideal location commitment.en_NZ
dc.subjectconvex cost specificationen_NZ
dc.subjectfinite reservation constrainten_NZ
dc.subjectmaximal differentiation resulten_NZ
dc.subjectconvex cost functionen_NZ
dc.subjectNash equilibrium,en_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshH Social Sciences (General)en_NZ
dc.subject.lcshHB Economic Theoryen_NZ
dc.titleDifferentiation on Main Street: Two topics in location theoryen_NZ
otago.schoolEconomicsen_NZ of Commerce with Honours of Otagoen_NZ Dissertationsen_NZ
otago.openaccessAbstract Only
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