The Importance of the Distribution of Consumers in Horizontal Product Differentiation
研究了霍特林圆环上消费者分布对最优多样性与市场均衡多样性比较的影响,发现当多数消费者紧邻企业时,萨洛普关于均衡企业数量大于最优数量的结论可能被逆转。
This paper examines the importance of the distribution of consumers in Hotelling’s circle on the comparison between the optimal and the market equilibrium levels of diversity. It finds that when most consumers are located very close to the firms, the result of Salop—that the equilibrium number of firms is larger than the optimal one (surplus maximizing)—can be reversed.