Additions, Extensions and Final Remarks

Abstract

Should the reader recall my earlier negative comments about the Hotelling hypothesis (or model), then he or she may be surprised to learn that a derivation and extension of that model is the first topic in the present chapter. The algebraic structure of the model provides a useful and not too difficult analytical exercise, and it is not completely impossible that someday it will help the reader to obtain a valuable insight into various commodity markets. At the same time let me make it absolutely clear that in the real world — what an acquaintence of mine once called “peopleland” — competition is much too stiff for students and teachers alike to become overly occupied (i.e. obsessed) with esoteric notions that may never be capable of explaining events and behavior in actual markets.