The Principle of Minimum Differentiation Holds under Sufficient Heterogeneity
证明当消费者偏好异质性足够大时，Hotelling提出的最小差异化原理成立，即n家企业会聚集在市场中心并收取高于边际成本的价格。
The so-called Principle of Minimum Differentiation, stated by Hotelling, has been challenged by many authors. This paper restores the Principle by showing that n firms locate at the center of the market and charge prices higher than the marginal cost of production when heterogeneity in consumers' tastes is large enough.