Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7352666 | Games and Economic Behavior | 2018 | 33 Pages |
Abstract
I show that in any symmetric Nash equilibrium of Hotelling's pure location game, as the number of firms becomes large, the limiting distribution of market shares converges to a Gamma(2,2) distribution. Remarkably, this is true regardless of the distribution of consumers. The proof for the invariance of the limiting market share distribution builds on results from the theory of statistical spacings.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Bassel Tarbush,