"Hotelling dynamics with more than two agents and myopic best replies"

Summary : We study a linear location model (Hotelling, 1929) in which n (with n>2) boundedly rational players follow (noisy) myopic best-reply behavior. We show through numerical and mathematical analysis that such players spend almost all the time
clustered together near the center, re-establishing Hotelling’s "Principle of Minimum Differentiation" that had been discredited by equilibrium analyses.