In Hotelling's linear location model where the linear city (location space) goes from 0 to 1, what is the Nash equilibrium in locations when there are 4 fırms? O All four firms locate at 1/2. O Two firms locale at 1/3 and two firms locate at 2/3. O One firm locates at 0, one firm locates at 1/3, one firm locates at 2/3, and one firm locates at 1. O There are no equilibria with 4 firms. O Two firms locate at 1/4 and two firms locate at 3/4.

In Hotelling's linear location model where the linear city (location space) goes from 0 to 1, what is the Nash equilibrium in locations when there are 4 fırms? O All four firms locate at 1/2. O Two firms locale at 1/3 and two firms locate at 2/3. O One firm locates at 0, one firm locates at 1/3, one firm locates at 2/3, and one firm locates at 1. O There are no equilibria with 4 firms. O Two firms locate at 1/4 and two firms locate at 3/4.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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