Harold Hotelling

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Harold Hotelling (1895-1973)

THE HAROLD HOTELLING PROFESSORSHIP IN ECONOMICS [UNC]
A native of Minnesota, Hotelling was born in 1895. He spent much of his youth in Seattle. He graduated from the University of Washington with a B.A. in journalism in 1919 and earned a master's in mathematics from the same university in 1921. He received a Ph.D. in mathematics from Princeton University in 1924. He began teaching at Stanford University that year...
In 1931, Hotelling moved to Columbia University, where he was a central figure in the creation of the statistics department there.
In 1946, UNC-CH President Graham recruited Hotelling to Chapel Hill to found the University statistics department. At UNC-CH, he was a professor of mathematical statistics, associate director of the Institute of Statistics and a professor of economics.
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Summaries & Brief References (OnPaper)

Hayter, Roger. Dynamics of Industrial Location, 1997, p.122

Johnston, R.J. et al., Dictionary of Human Geography, "Hotelling Model" 3rd ed., 1994, p.251; 4th ed., 2000, p.345 (D.M.Smith)

Ponsard, C. History of Spatial economic Theory, 1983, p.43, 106ff.

Summaries & Brief References (OnLine):

4.4 COMPETITION AND LOCATION DECISIONS [Hoover, Introduction to Regional Economics, 1985, Online]

Literature:

Ansari, Asim, Economides, Nicholas and Steckel, Joel. The Max-Min-Min Principle of Product Differentiation. Journal of Regional Science, May 1998, 38(2), p. 207.

We analyze two and three-dimensional variants of Hotelling's model of differentiated products. In our setup, consumers can place different importances on each product attribute; these are measured by weights on the disutility of distance in each dimension. Two firms play a two-stage game; they choose locations in stage 1 and prices in stage 2. We seek subgame-perfect equilibria.

Bhadury, Joyendu. Competitive Location under Uncertainty of Costs. Journal of Regional Science, November 1996, 36(4), p. 527.

... the centroid problem from competitive location theory for a linear market with uniform demand, assuming that the leader has imperfect information about the follower's fixed and marginal costs. It is shown that the general versio n of this problem can be formulated as a nonlinear programming problem and the exact solution can be obtained analytically in a special case. A simple strategy is also given for the general problem, and it is proven that this strategy has a guaranteed err or bound.

Brown, Stephen. Retail Location Theory: The Legacy of Horald Hotelling. Journal of Retailing 65(4), Winter 1989, pp.450-70 [Bibliography!].

Brown, Stephen. "Harold Hotelling and the Principle of Minimum Differentiation," Progress in Human Geography 13(4), 1989, pp.471-93.

Chamberlin, Edward Hastings. "The Product as an Economic Variable," Quarterly Journal of Economics, Vol. 67, No. 1. (Feb., 1953), pp. 1-29.
[JSTORS; pp.124ff.(spatial location)
[reprinted in: Towards a More General Theory of Value. N.Y.: Oxford Univ. Press, 1957, ch.6.]

Downs, A., An Economic Theory of Democracy. N.Y.: Harper & Row, 1957.

Eaton, B. Curtis and Lipsey, Richard G. On the Foundations of Monopolistic Competition and Economic Geography: The Selected Essays of B. Curtis Eaton and Richard G. Lipsey. Economists of the Twentieth Century Series. Cheltenham, U.K. and Lyme, N.H.: Elgar; distributed by American International Distribution Corp., Williston, VT, 1997. Pp. xxvii, 314. $95.00. ISBN 1-85898-536-6.

Sixteen previously published essays focus on address models of value theory and related issues. Topics include a reconsideration of minimum differentiation; the non-uniqueness of equilibrium in the Loschian location model; the introduction of space into the neoclassical model of value theory; spatial monopoly, natural monopoly, pure profits, and land rents; location and industrial efficiency with free entry; freedom of entry and the existence of pure profit; the theory of market pre-emption and the persistence of excess capacity and monopoly in growing spatial markets; comparison shopping and the clustering of homogeneous firms; the block metric and the law of markets; the durability of capital as a barrier to entry; capital, commitment, and entry equilibrium; an economic theory of central places; address models of value theory; product differentiation; the theory of multinational plant location...

Eaton, B.C. and R.G.Lipsey, The Principle of Minimum Differentiation Revisited: Some New Developments in the Theory of Spatial Competition, Review of Economic Studies, 42, 1975, 27-49.

Eaton, Curtis and Richard Lipsey "Comparison Shopping and the Clustering of Homogeneous Firms," Journal of Regional Science, 19, 4 (November 1979), 421-435.

Gosh, Avijit and Bruce Buchanan, "Multiple Outlets in a Duopoly: A First Entry Paradox," Geographical Analysis 20(2), April 1988, 111-21.

Hirschman, Albert O., Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States. Harvard University Press, 1970. [Ch.6 "On Spatial Duopoly and the Dynamics of the Two-Party Systems," pp.62ff.]

Hotelling, Harold, "Stability and Competition," Economic Journal 39(1), 1929, 41- 57. [Paper (JSTOR)]

Isard, Walter (et al.). General Theory. M.I.T. Press, 1969, Ch.9 ("Location Games with Applications to Classic Location Problems", pp.430ff.)

Kramer, G.H., A Dynamic Model of Political Equilibrium, Journal of Economic Theory 16, 1977, pp.310-34.

A. P. Lerner, H. W. Singer Some Notes on Duopoly and Spatial Competition The Journal of Political Economy, Vol. 45, No. 2. (Apr., 1937), pp. 145-186. [ Paper (JSTOR)]

Pfouts, Ralph W. ed., Essays in economics and econometrics; a volume in honor of Harold Hotelling. Chapel Hill, Published for the School of Business Administration, University of North Carolina by the University of North Carolina Press (1960)

Prescott, Edward C. and Michael Vischer, "Sequential Location Among Firms with Foresight," Bell Journal of Economics, 8,2 (Autumn 1977), 378-393, "substantially expand the theoretical perspective on related problems by examining the behavior of firms that try to anticipate the decision rules used by later entrants to the market." (Hoover, 1985)

Rothschild, R., "A Note on the Effect of Sequential Entry on Choice of Location," Journal of Industrial Economics, 24 (1976), 313-20.

Smithies, Arthur., Optimum Location in Spatial Competition The Journal of Political Economy, Vol. 49, No. 3. (Jun., 1941), pp. 423-439. [ Paper (JSTOR)]

Stevens, B. An Application of Game Theory to a Problem in Location Strategy, Papers, Reg.Sc.Assoc. 7, 1961, 143-57.

Teitz, M.B., Locational Strategies for Competitive Systems. Journ. of Reg. Science 8, 1968, 135-48.

Geography & Oligopolistic Competition

Knickerbocker, F.T., Oligopolistic Reaction and the Multinational Enterprise. Harvard University Press, Vambridge, Mass., 1973.

Laulajainen, Risto, Three Tests of Locational Matching, Geografiska Annaler B 1/1981.

Rees, John, "On the Spatial Spread and Oligopolistic Behavior of Large Rubber Companies," Geoforum, vol.9, 1978, pp. 319-30.

Clippings:

GOP group's ad shows Nader attacking Gore Seattle Times, October 28, 2000, by David Postman
Following the theory that your enemy's enemy is your friend, a Republican group is paying for a new television ad featuring Ralph Nader attacking Vice President Al Gore.

Return to Econ & Bus Geog
2005 [krumme@u.washington.edu]

Hotelling Resources

Spatial Competition

(http://faculty.washington.edu/krumme/450/hotelling.html)

Following the theory that your enemy's enemy is your friend, a Republican group is paying for a new television ad featuring Ralph Nader attacking Vice President Al Gore.

Return to Econ & Bus Geog 2005 [krumme@u.washington.edu]

Return to Econ & Bus Geog
2005 [krumme@u.washington.edu]