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Hotelling revisits the lab: equilibration in continuous and discrete time
Curtis Kephart, Daniel Friedman
Journal:

Journal of the Economic Science Association / Volume 1 / Issue 2 / December 2015

Published online by Cambridge University Press:

01 January 2025, pp. 132-145
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We investigate experimentally the impact of continuous time on a four-player Hotelling location game. The static pure strategy Nash equilibrium (NE) consists of firms paired-up at the first and third quartiles of the linear city. In a repeated simultaneous move (discrete time) treatment, we largely replicate previous findings in which subjects fail to converge to the NE. However, in asynchronous move (continuous time) treatments we see clear convergence towards the NE.

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