Elias Carroni, Professor of Economics, University of Bologna

Thursday December 14, 2023, we welcome Elias Carroni, Professor of Economics at University of Bologna.

• Hotelling Price Competition Game
• Market Coverage

CV

Publications

Title: Monopolistic Duopoly, with Emanuele Bacchiega and Alessandro Fedele.

Abstract: We delve into the Hotelling price competition game without assuming full market cov- erage, and derive three equilibrium configurations. Two of them are well-known: Hotelling duopoly, where firms set the prices with the aim of stealing customers from the rival, and the market is fully covered; Local Monopolies, where firms avoid strategic interaction and busi- ness stealing, and the market is partially covered. In the third, firms interact strategically to keep the market covered, while at the same time avoiding business stealing. We define it as Monopolistic Duopoly (MD) because it combines the features of the other two scenarios. Despite the existence of few contributions on MD, this equilibrium configuration has been substantially ignored. By spelling out the economics of MD and emphasizing its intrigu- ing properties, we establish that MD has, instead, relevant implications for the Hotelling literature.

13h30, room 227