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| Yasuo Sanjo |
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| ''Hotelling's Location Model with Quality Choice in Mixed Duopoly'' |
| ( 2007, Vol. 18 No.2 ) |
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| We investigate a mixed duopoly market by introducing quality choice into the Hotelling-type spatial competition model with linear transportation costs. We show that there does not exist a subgame perfect Nash equilibrium (SPNE) of location choice in the three-stage game that is location-then-quality choice and subsequent price choice. Moreover, we show the conditions of the existence of the quality equilibrium. |
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| Keywords: |
JEL: R3 - Production Analysis and Firm Location: General
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : Feb 22 2007 | | Manuscript Accepted : Mar 27 2007 |
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