Analysis and implications of spatial competition
Neyra M., Miguel Angel
Levy, Ferdinand K.
Master of Arts
For many years, economists abstracted from considerations of space in building models of competition. This deficiency was in part made up by Harold Hotellines contribution in 1929 to the economics of space. The theory developed by Hotelling was later elaborated on by Arthur Smithies. This thesis examines the assumptions and conclusions of Hotelling and Smithies. As is the case in many theoretical articles in economics, the models constructed by these authors are not applicable in their present forms to actual problems in the real world. The major contribution, then, of the thesis is its concluding section, which shows how the assumptions of Hotelling and Smithies should be modified to make them models applicable to actual decisions.