Abstract: This paper analyzes a three stage Hotelling duopoly model with endogenous pricing strategies,where firms can choose uniform pricing or discriminatory pricing The subgame perfect Nash equilibrium shows that firms choose either uniform pricing or discriminatory pricing simultaneously When the difference between the marginal costs of discriminatory pricing and uniform pricing is not too large,or when consumers pay attention to product characteristic,firms will choose discriminatory pricing,although the profits under uniform pricing are larger than those under discriminatory pricing Whereas,when the difference between the two marginal costs is large,or when consumers don’t care about product characteristic,firms will choose uniform pricing Finally,the paper compares social net welfare under two pricing strategies

Key words: horizontal differentiation, Hotelling model, uniform pricing, discriminatory pricing