The Econometric SocietyEdited by: Marina Halac • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Jul, 1985, Volume 53, Issue 4
https://www.jstor.org/stable/1912653
p. 767-782
A. de Palma, J.-F. Thisse, V. Ginsburgh, Y. Y. Papageorgiou
The so-called Principle of Minimum Differentiation, stated by Hotelling, has been challenged by many authors. This paper restores the Principle by showing that n firms locate at the center of the market and charge prices higher than the marginal cost of production when heterogeneity in consumers' tastes is "large enough."
December 11, 2025
We are deeply saddened by the passing of Kate Ho, the John L. Weinberg Professor of Economics and Business Policy at Princeton University and a Fellow of the Econometric Society. Kate was a brilliant IO economist and scholar whose impact on the profession will resonate for many years to come.
