Local market structure in a Hotelling town

Informed seller in a Hotelling market

We consider the problem of a monopolist seller who is selling a good to a potential buyer and is privately informed about some of the good’s attributes. We focus on the case where goods with di¤erent attributes are horizontally di¤erentiated: they appeal di¤erently to di¤erent types of the buyer. Such a market is represented via a standard Hotelling (1929) model, where the seller’s and the buye...

Market size, scale economies, and tourism market structure: A case ofᅡᅠhistoric water town tourism in China

The historic water towns in the Tai Lake Basin are representative of tourism products featuring a unique cultural heritage landscape and the local way of life in eastern China. Since the 1980s, this market has experienced phenomenal growth in both the quantity of water towns and the scale of tourist arrivals. Drawing from industrial economics theory and an agent-based modeling approach, we exam...

a study on rate making and required reserves determination in reinsurance market: a simulation

reinsurance is widely recognized as an important instrument in the capital management of an insurance company as well as its risk management tool. this thesis is intended to determine premium rates for different types of reinsurance policies. also, given the fact that the reinsurance coverage of every company depends upon its reserves, so different types of reserves and the method of their calc...

Market Structure and Price Adjustment in the Iranian Tea Market

Maximal or Minimal Differentiation in a Hotelling Market? A Fresh Perspective

A perplexing problem in spatial modelling—going back to Hotelling’s linear market—is whether firms will cluster together or separate themselves. Maximal differentiation is the prevailing equilibrium when travel costs are quadratic and minimal differentiation results when price competition is limited. The reality for most markets is that the force that draws firms together (maximize demand) and ...