Price and quantity competition in a Hotelling linear market model with network connectivity: in support of Singh and Vives (1984)

Key Points

• This analysis reveals the interplay between price competition and quantity competition in market scenarios.
• Key metrics illustrate how network connectivity influences market equilibrium outcomes and strategies.
• Observational analysis emphasizing the Hotelling model emphasizes geographic positioning of firms in competitive markets.
• Findings support prior theories, indicating that network connectivity significantly alters competitive dynamics.