Hotelling competition with behaviourally-confused vendors

Richard Fairchild, Graham Mallard

Research output: Contribution to journalArticlepeer-review


We consider a Hotelling spatial competition model, in which two vendors simultaneously decide, firstly, on location, and, secondly, on price. We assume quadratic transportation costs, so that the vendors would locate at maximum distance in equilibrium. However, we introduce a counter-acting behavioural/psychological/emotional 'attraction' factor that 'confuses' the vendors and pulls them together. We examine the combined effects of economic price-softening driving the vendors apart, versus behavioural attraction, on the vendors' location decision.

Original languageEnglish
Pages (from-to)1450-1456
JournalEconomics Bulletin
Issue number3
Publication statusPublished - 2 Jul 2017

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)


Dive into the research topics of 'Hotelling competition with behaviourally-confused vendors'. Together they form a unique fingerprint.

Cite this