Question

Find the equilibrium locations if there are five firms competing over locations in the Hotelling linear...

Find the equilibrium locations if there are five firms competing over locations in the Hotelling linear city (firms choose locations simultaneously, product space is the unit interval, prices are fixed, and there is uniform distribution of consumers on the unit interval). please give me a detailed solution,thanks

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

ANSWER: Here "Linear city" refers to the interval in which the consumers are get diffused in uniform manner along this particular interval. If there are 5 firms situated at each boundary those who sells the same product. One and only difference among those 5 firms is their location. Here C= Cost per unit of the product which is left upto the customer whether he pays or not. For suppose if in case anyone of the customer is at a particular distance say 'x' to one of the seller's then its transportation cost will be t*x2. Therefore this cost will represents the value of the time, gasoline or adaption to any commodity etc.. Consumers generally will have the unit demands, and they will buy at most of unit of the commodity.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Find all the equilibrium locations if there are five firms competing over locations in the Hotelling...
Find all the equilibrium locations if there are five firms competing over locations in the Hotelling linear city (product space is the unit interval, prices are fixed, and there is uniform distribution of consumers' tastes).
Consider a Hotelling linear city where four firms simultaneously decide their own locations 0 ≤ θi...
Consider a Hotelling linear city where four firms simultaneously decide their own locations 0 ≤ θi ≤ 1 (i = 1, 2, 3, 4) to sell their products. Suppose that one-sixteenth of consumers lives at a location x = 0, one-eighth of consumers lives at a location x = 1, and the remaining 13/16 of consumers live uniformly between x = 0 and x = 1. 1) In the Nash equilibrium, where is the location of the firm from which...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s largest and most successful retailer, with $487.5 billion in 2014 sales and nearly 11,000 stores worldwide, including more than 4,000 in the United States. Walmart has 2.2 million employees and ranks first on the Fortune 500 list of companies. Walmart had such a large and powerful selling machine that it really didn’t have any serious competitors—until now. Today, Walmart’s greatest threat is Amazon.com, often...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT