Article ID Journal Published Year Pages File Type
7352666 Games and Economic Behavior 2018 33 Pages PDF
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
,