The Nature of Equilibrium in a Location Model

Osborne, Martin J.; Pitchik, Carolyn

doi:10.2307/2526617

Cited by 62 publications

(55 citation statements)

References 10 publications

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“…Intuitively, the asymmetric strategies are not consistent with price dispersioñ For particular two-person games, such as the War of Attrition (Hendricks, Weiss and Wilson, 1988), capacity-constrained price setting games (Osborne and Pitchik, 1986a), and price setting with loyal consumers (Narasimhan, 1988), uniqueness has been thoroughly examined. Osborne and Pitchik (1986b) also examine the question of uniqueness in the 3-firm "pure" location model of Hotelling (1929). They show that with a uniform distribution of consumers, in addition to a symmetric mixed strategy equilibrium (sce Shaked, 1982), there is a unique (up to symmetry) asymmetric equilibrium within the class of equilibria in which at least one firm uses a pure strategy.…”

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confidence: 99%

It takes two to tango: Equilibria in a model of sales

Baye

Kovenock

Vries

1992

Games and Economic Behavior

118

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We show that the Varian model of sales with more than two firms has two types of equilibria: a unique symmetric equilibrium, and a continuum of asymmetric equilibria. ln contrast, the 2-firm game has a unique equilibrium that is symmetric. For the n-firm case the asymmetric equilibria imply mixed strategies that can be ranked by first-order stochastic dominance. This enables one to rule out asymmetric equilibria on economic grounds by constructing a metagame in which both firms and consumers are players. The unique subgame perfect equilibrium of this metagame is symmetric. Journal ojEconomic Literature Classification Number:22. O

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confidence: 99%

It takes two to tango: Equilibria in a model of sales

Baye

Kovenock

Vries

1992

Games and Economic Behavior

118

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“…In another paper, Osborne et.al. (1986) focus on the study of symmetry of mixed strategy equilibrium for an arbitrary distribution of the number of consumers and firms [10]. Analysing the equilibrium at macroeconomic level, Coffinet and Pop (2013) show that the current financial crisis offers a unique opportunity to investigate the most important features of market indicators in a particular environment and their usefulness form a banking supervisory perspective.…”

Section: Literature Reviewmentioning

confidence: 99%

Econometric Modelling of the Fiscal Pressure on the Equilibrium of a Sample of Entities

Bătrâncea¹,

Morar²,

Bechis³

et al. 2017

Preprint

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Abstract. The financial equilibrium of the enterprise is an important company function ensuring by itself the maintenance of the enterprise of the competitive market. The financial equilibrium is analysed in numerous empirical studies. In this empirical study we highlight for the first time in a research the impact that taxation has on the financial equilibrium of some companies over ten years, period that includes the pre-crisis, the financial crisis and postcrisis periods.

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“…See the discussion in Footnote 18. There is an extensive literature on the existence of price equilibria in spatial models (see among others d 'Aspremont et al, 1979;Anderson, 1987;and Osborne and Pitchik, 1986).…”

Section: Basic Model Set Upmentioning

confidence: 99%

Outsourcing and trade in a spatial world

Egger

2007

Journal of Urban Economics

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This paper provides an analysis of outsourcing and trade in a spatial model à la Hotelling. In this setting, we discuss the trade-off between transport-cost-related disadvantages and outsourcing-induced production cost advantages of a large economy. The model gives a rich picture of possible trade and welfare effects of a movement towards free trade and points to the role of national transport costs for explaining these effects. Moreover, it gives economic insights in the countries' incentives to lower tariffs and to participate in free trade agreements with partner countries that differ in size and economic capacity.JEL Code: F12, F15, L13.

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The Nature of Equilibrium in a Location Model

Cited by 62 publications

References 10 publications

It takes two to tango: Equilibria in a model of sales

It takes two to tango: Equilibria in a model of sales

Econometric Modelling of the Fiscal Pressure on the Equilibrium of a Sample of Entities

Outsourcing and trade in a spatial world

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