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Models à La Lancaster and à La Hoteling: When they are the same
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Abstract
Consumer behavior in differentiated product markets can be specified following the Lancastriancharacteristics approach or following Hotelling´s approach of spatial competition. In the case ofunit demand I present a class of models of (heterogeneous) consumer behavior which can bewritten as models à la Lancaster as well as models à la Hotelling.Product differenciation, characteristics approach