Hotelling Simulations

The Legend of the Simulations
The following simulations plot firms locations, prices and profits through time. The final location is where firms settle to, with no incentive to deviate right or left, or to increase or decrease prices.
Dots: Firms
Horizontal Axis: Locations
Vertical Axis: Price
Dot Size: Firm Profit (larger => higher profit)
Dot Color: Firm Profit (warmer => higher profit, cooler => lower profit)



2 Players, Linear City, Quadratic Transportation Costs Results in line with theoretical results of D’Aspremont et al. (1979)



4 Players, Linear City, Quadratic Transport Costs Results in line with Hotelling simulations of Brenner (2007)



8 Players, Linear City, Quadratic Transport Costs Results in line with Hotelling simulations of Brenner (2007)


16 Players, Linear City, Quadratic Transport Costs
These results are a first.


32 Players, Linear City, Quadratic Transport Costs - Odd equilibrium results
Note: screen shots

But also
















3 Players, Circle City, Quadratic Transportation Costs
These results are a first, but in line with the one-shot, location-then-price Nash equilibrium



4 Players, Circle City, Quadratic Transport Costs
These results are a first, but in line with the one-shot, location-then-price Nash equilibrium



8 Players, Circle City, Quadratic Transport Costs
These results are a first, but in line with the one-shot, location-then-price Nash equilibrium


16 Players, Circle City, Quadratic Transport Costs
These results are a first, but in line with the one-shot, location-then-price Nash equilibrium


32 Players, Circle City, Quadratic Transport Costs
Note:




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