TY  - GEN
A1  - Kauffeldt, Florian
A1  - Wiesenfarth, Boris
EP  - 49
UR  - https://archiv.ub.uni-heidelberg.de/volltextserver/16772/
N2  - We analyze a Hotelling location-then-price duopoly game under demand uncertainty with uniformly distributed consumers in a standard quadratic costs scenario. The novelty of our approach consists of assuming that firms' beliefs are represented by non-extreme-outcome-additive (neo-additive) capacities. We derive firms' subgame-perfect product design decisions under ambiguity. Furthermore, we
investigate the influence of ambiguity and ambiguity attitude on equilibrium product differentiation and contrast our results with an environment of risky firms. We find that the impact of the degree of confidence or ambiguity is particularly significant when it comes to delivering accurate explanations for a wide range of phenomena related to observed product design behavior.
TI  - Confidence, Pessimism and their Impact on Product Differentiation in a Hotelling Model with Demand Location Uncertainty
KW  - Hotelling
KW  -  Confidence
KW  -  Optimism
KW  -  Pessimism
KW  -  Degree of Ambiguity
KW  -  Choquet Expected Utility
KW  -  Neo-additive Capacities
KW  -  Product Differentiation
T3  - Discussion Paper Series / University of Heidelberg, Department of Economics
Y1  - 2014/04//
AV  - public
ID  - heidok16772
ER  -