5 Questions
What is Hotelling's law also known as?
The principle of minimum differentiation
When was Hotelling's law first observed?
1929
What is the opposing phenomenon to Hotelling's law?
Product differentiation
In the example provided, where is the optimal location for a single shop according to social welfare function?
Halfway along the length of the street
What does Hotelling's law suggest about product similarity?
Producers should make their products as similar as possible
Explore the concept of Hotelling's law and product differentiation in economics. Learn about the principle of minimum differentiation and the Hotelling's linear city model, as well as the business advantage of product differentiation.
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