Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Consider the Hotelling model of the competition between two firms discussed in class. Sele...

Consider the Hotelling model of the competition between two firms discussed in class. Select all that apply a If both firms are localized in position 12G e center of the line neither firm has

Consider the Hotelling model of the competition between two firms discussed in class. Select all that apply a. If both firms are localized in position 1/2G.e., center of the line), neither firm has incentives to deviate and move to a different position D. In the Nash Equilibrium in pure strategies firms will localize together anywhere along the line. C. lf Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line. d. If Firm 1 and Firm 2 localize at the same point along the line, they will each sell to 50% of the consumers.

May 15 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions