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Chain-Store Pricing Across Local Markets

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Author Info
Paul W. Dobson
Michael Waterson

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Abstract

Chain-stores now dominate most areas of retailing. While retailers may operate nationally or even internationally, the markets they compete in are largely local. How should they best operate pricing policy in respect of the different markets served-price uniformly across the local markets or on a local basis according to market conditions? We model this by allowing local market differences, with retail markets differing by their size and the number of players present. We show that practising price discrimination is not always best for a chain-store. Competitive conditions exist under which uniform pricing can raise profits. Copyright Blackwell Publishing 2005.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Economics & Management Strategy.

Volume (Year): 14 (2005)
Issue (Month): 1 (03)
Pages: 93-119
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Handle: RePEc:bla:jemstr:v:14:y:2005:i:1:p:93-119

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  1. Shin-Kun Peng & Takatoshi Tabuchi, 2005. "Spatial Competition in Variety and Number of Stores," CIRJE F-Series CIRJE-F-360, CIRJE, Faculty of Economics, University of Tokyo. [Downloadable!]
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This page was last updated on 2008-8-11.

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