Kenneth Arrow to switch from mathematics and statistics applied to actuarial studies towards more general applications of mathematics in general economic theory. Hotelling is the eponym of Hotelling's law, Hotelling's lemma, and Hotelling's rule in economics. Hotelling was influenced by the writing of Henry George and was an editorial adviser for the Georgist journal AJES Mason Gaffney claims that Hotelling kept his lifelong beliefs about land and tax reform secret because he feared ridicule. Spatial economics One of Hotelling's most important contributions to economics was his conception of “spatial economics” in his 1929 article. Space was not just a barrier to moving goods around, but rather a field upon which competitors jostled to be nearest to their customers. Hotelling considers a situation in which there are two sellers at point A and B in a line segment of size l. The buyers are distributed uniformly in this line segment and carry the merchandise to their home at cost c. Let p1 and p2 be the prices charged by A and B, and let the line segment be divided in 3 parts of size a, x+y and b, where x+y is the size of the segment between A and B, a the portion of segment to the left of A and b the portion of segment to the right of B. Therefore, a+x+y+b=l. Since the product being sold is a commodity, the point of indifference to buying is given by p1+cx=p2+cy. Solving for x and y yields: Let q1 and q2 indicate the quantities sold by A and B. The sellers profit are: By imposing profit maximization: Hotelling obtains the economic equilibrium. Hotelling argues this equilibrium is stable even though the sellers may try to establish a price cartel. Hotelling extrapolates from his findings about spatial economics and links it to not just physical distance, but also similarity in products. He describes how, for example, some factories might make shoes for the poor and others for the rich, but they end up alike. He also quips that, "Methodists and Presbyterian churches are too much alike; cider too homogenous." Market socialism and Georgism As an extension of his research in spatial economics, Hotelling realized that it would be possible and socially optimal to finance investment in public goods through a Georgist land value tax and then provide such goods and services to the public at marginal cost (in many cases for free).