Hotelling’s Duopoly in a Two-Sided Platform Market on the Plane

Equilibrium in a two-sided market represented by network platforms on the plane and heterogeneous agents is investigated. The advocated approach is based on the duopoly model which implies a continuum of agents of limited size on each side of the market and examines the agents’ heterogeneous utility...

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Main Authors:	Vladimir Mazalov, Elena Konovalchikova
Format:	Article
Language:	English
Published:	MDPI AG 2020-05-01
Series:	Mathematics
Subjects:	two-sided platform market pricing Hotelling’s duopoly on the plane Nash equilibrium optimal location of platforms
Online Access:	https://www.mdpi.com/2227-7390/8/6/865

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spelling	doaj-6c41b0babcf44b4583f16bb975d0f4de2020-11-25T02:54:02ZengMDPI AGMathematics2227-73902020-05-01886586510.3390/math8060865Hotelling’s Duopoly in a Two-Sided Platform Market on the PlaneVladimir Mazalov0Elena Konovalchikova1Institute of Applied Mathematical Research, Karelian Research Center of the Russian Academy of Sciences, 11, Pushkinskaya str., 185910 Petrozavodsk, RussiaLaboratory of Digital Technologies in Regional Development, Karelian Research Center of the Russian Academy of Sciences, 11, Pushkinskaya str., 185910 Petrozavodsk, RussiaEquilibrium in a two-sided market represented by network platforms on the plane and heterogeneous agents is investigated. The advocated approach is based on the duopoly model which implies a continuum of agents of limited size on each side of the market and examines the agents’ heterogeneous utility with the Hotelling specification. The exact values were found for the equilibrium in the case of duopoly in a two-sided market with two platforms on the plane. The dependence of the platforms’ benefits on network externalities was investigated. The problem of the optimal location of platforms in the market was considered.https://www.mdpi.com/2227-7390/8/6/865two-sided platform marketpricingHotelling’s duopoly on the planeNash equilibriumoptimal location of platforms
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Vladimir Mazalov Elena Konovalchikova
spellingShingle	Vladimir Mazalov Elena Konovalchikova Hotelling’s Duopoly in a Two-Sided Platform Market on the Plane Mathematics two-sided platform market pricing Hotelling’s duopoly on the plane Nash equilibrium optimal location of platforms
author_facet	Vladimir Mazalov Elena Konovalchikova
author_sort	Vladimir Mazalov
title	Hotelling’s Duopoly in a Two-Sided Platform Market on the Plane
title_short	Hotelling’s Duopoly in a Two-Sided Platform Market on the Plane
title_full	Hotelling’s Duopoly in a Two-Sided Platform Market on the Plane
title_fullStr	Hotelling’s Duopoly in a Two-Sided Platform Market on the Plane
title_full_unstemmed	Hotelling’s Duopoly in a Two-Sided Platform Market on the Plane
title_sort	hotelling’s duopoly in a two-sided platform market on the plane
publisher	MDPI AG
series	Mathematics
issn	2227-7390
publishDate	2020-05-01
description	Equilibrium in a two-sided market represented by network platforms on the plane and heterogeneous agents is investigated. The advocated approach is based on the duopoly model which implies a continuum of agents of limited size on each side of the market and examines the agents’ heterogeneous utility with the Hotelling specification. The exact values were found for the equilibrium in the case of duopoly in a two-sided market with two platforms on the plane. The dependence of the platforms’ benefits on network externalities was investigated. The problem of the optimal location of platforms in the market was considered.
topic	two-sided platform market pricing Hotelling’s duopoly on the plane Nash equilibrium optimal location of platforms
url	https://www.mdpi.com/2227-7390/8/6/865
work_keys_str_mv	AT vladimirmazalov hotellingsduopolyinatwosidedplatformmarketontheplane AT elenakonovalchikova hotellingsduopolyinatwosidedplatformmarketontheplane
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Hotelling’s Duopoly in a Two-Sided Platform Market on the Plane

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