Wish it worked for gas prices. I’ve seen multiple examples of stations positioned directly across the street from each other with a $0.25/liter differential—and that without any appreciable distinction in services, amenities, or design.
If I see this I immediately want to know why! Brand comfort/recognition? Ease of more drivers to make a certain turn? Some sort of luxury effect where consumers perceive value from price? Because it’s not nothing; there is a reason why enough customers pick the higher price to allow it to persist
Wish it worked for gas prices. I’ve seen multiple examples of stations positioned directly across the street from each other with a $0.25/liter differential—and that without any appreciable distinction in services, amenities, or design.
If I see this I immediately want to know why! Brand comfort/recognition? Ease of more drivers to make a certain turn? Some sort of luxury effect where consumers perceive value from price? Because it’s not nothing; there is a reason why enough customers pick the higher price to allow it to persist
Is the equilibrium in hotelling a Nash Equilibrium?
In the original version, no. In the fixed price, yes