Differentiation on Main Street: Two topics in location theory
|dc.identifier.citation||Gray, R. (2002, October). Differentiation on Main Street: Two topics in location theory (Dissertation, Bachelor of Commerce with Honours). Retrieved from http://hdl.handle.net/10523/1163||en|
|dc.description.abstract||Two 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.subject||convex cost specification||en_NZ|
|dc.subject||finite reservation constraint||en_NZ|
|dc.subject||maximal differentiation result||en_NZ|
|dc.subject||convex cost function||en_NZ|
|dc.subject.lcsh||H Social Sciences (General)||en_NZ|
|dc.subject.lcsh||HB Economic Theory||en_NZ|
|dc.title||Differentiation on Main Street: Two topics in location theory||en_NZ|
|thesis.degree.name||Bachelor of Commerce with Honours|
|thesis.degree.grantor||University of Otago||en_NZ|
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