Article ID Journal Published Year Pages File Type
7349021 Economics Letters 2018 4 Pages PDF
Abstract
The Hotelling-Downs model of spatial competition is used to investigate the strategic position-taking behavior of firms or political parties under scoring rules. Previous studies of non-convergent Nash equilibria - equilibria in which divergent positions are chosen - found that they often do not exist and, when they do, they are fairly symmetric. In particular, this is true for convex scoring rules (Cahan and Slinko, 2017). Here, we investigate non-convergent equilibria for the broad class of weakly concave scoring rules. Surprisingly, we find that only asymmetric equilibria can exist, and we present several examples.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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