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Derive the \"Maximum Differentiation Principle\" by using original Hoteling duop

ID: 1095837 • Letter: D

Question


Derive the "Maximum Differentiation Principle" by using original Hoteling duopoly model with quadratic transportation cost in distance.


Derive the "Maximum Differentiation Principle" by using original Hoteling duopoly model with quadratic transportation cost in distance.


Derive the "Maximum Differentiation Principle" by using original Hoteling duopoly model with quadratic transportation cost in distance.


Derive the "Maximum Differentiation Principle" by using original Hoteling duopoly model with quadratic transportation cost in distance.


Derive the "Maximum Differentiation Principle" by using original Hoteling duopoly model with quadratic transportation cost in distance.

Explanation / Answer

Through popular information technologies (e.g., call centers, web portal, ecommerce and social media, etc.), traditional shops change their functions for servicing online demands while still providing offline sales and services, which expand the market and the service capacity. In the Hotelling model that formulates the demand effect by considering just offline demand, the shops in a line city will locate at the center as a the result of competition by games. The online demands are met by the delivery logistics services provided by the shops with additional cost; the consumers

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