Construct · 1 fields · 1 citations

principle of maximum differentiation: a standalone construct

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Industrial organization

result that with quadratic transport costs, firms in a Hotelling location-then-price game locate at opposite ends of the market.

In industrial organization, principle of maximum differentiation refers to result that with quadratic transport costs, firms in a Hotelling location-then-price game locate at opposite ends of the market. This meaning comes from D'Aspremont (1979) in Econometrica.[1]

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Nearby constructs

differentiation4 fields · 4 citationsjingle · one word, four constructs game2 fields · 3 citationsjingle · one word, two constructs market3 fields · 5 citationsjingle · one word, three constructs

References

d'Aspremont, C., Gabszewicz, J. J., & Thisse, J. -. (1979). On Hotelling's "Stability in Competition". Econometrica, 47(5), 1145. https://doi.org/10.2307/1911955

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