Tuesday 11
Session Alberto Pinto
Alberto Pinto
› 11:00 - 11:30 (30min)
› 402
LOCAL MARKET STRUCTURE IN A HOTELLING TOWN
João Almeida  1@  , Alberto Pinto * , Telmo Parreira@
1 : LIAAD-INESC TEC and Polytechnic Institute of Bragança
* : Corresponding author

We develop a theoretical framework to study the location-price competition in a Hotelling-type network game, extending the Hotelling model, with linear transportation costs, from a line (city) to a network (town). We show the existence of a pure Nash equilibrium price if, and only if, some explicit conditions on the production costs and on the network structure hold. Furthermore, we prove that the local optimal localization of the firms are at the crossroads of the town.


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