Two dimensional Hotelling model : analytical results and numerical simulations

Hernán Larralde (1) , Pablo Jensen (2, 3) , Margaret Edwards (3)

1 Centro de Ciencias Físicas
2 Phys-ENS - Laboratoire de Physique de l'ENS Lyon
3 LET - Laboratoire d'économie des transports

We present an analytical solution to a two dimensional Hotelling model with quadratic transportation costs for two stores in a square city. We assume that the consumers choice as to which store to patronize is tempered by a logit function. As in the one-dimensional case, stores are led to aggregate spatially as the disorder introduced by the logit increases. This solution is confirmed by numerical simulations.

Mots clés: Hotelling; simulations; analytical

Domaines: Physique et Société [physics.soc-ph]

Hernán Larralde, Pablo Jensen, Margaret Edwards. Two dimensional Hotelling model : analytical results and numerical simulations. 2006. ⟨hal-00114288⟩