Basing Point Pricing: Competition versus Collusion
AbstractThe authors consider the implications of game-theoretic models for the competitive or collusive nature of basing point pricing. In one-shot games, equilibrium price schedules do not generally conform to basing point pricing with unrestricted price competition. Nevertheless, basing point pricing can emerge in dynamic contexts. Define modified FOB price policy as using FOB in one's natural market and matching the rival's delivered price whenever profitable. A configuration where both firms do this is a subgame perfect equilibrium of a two-stage game where firms choose first price policies and then compete in the marketplace. Further, with repeated.competition basing point pricing can be used as punishment device. Copyright 1992 by Blackwell Publishing Ltd.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Industrial Economics.
Volume (Year): 40 (1992)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821
Other versions of this item:
- THISSE, Jacques-François & VIVES, Xavier, . "Basing point pricing: Competition versus collusion," CORE Discussion Papers RP -1003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thisse, J-F. & Vives, X., 1990. "Basing Point Pricing: Competition Versus Collusion," UFAE and IAE Working Papers 136-90, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Aguirre, Inaki & Espinosa, Maria Paz & Macho-Stadler, Ines, 1998. "Strategic entry deterrence through spatial price discrimination," Regional Science and Urban Economics, Elsevier, vol. 28(3), pages 297-314, May.
- Vives, Xavier, 2005. "Games with strategic complementarities: New applications to industrial organization," International Journal of Industrial Organization, Elsevier, vol. 23(7-8), pages 625-637, September.
- Iñaki Aguirre & Ana M. Martin, 2001.
"On the strategic choice of spatial price policy: the role of the pricing game rules,"
AccessEcon, vol. 12(2), pages 1-7.
- Martín Arroyuelos, Ana María & Aguirre Pérez, Iñaki, 2001. "On the strategic choice of spatial price policy: the role of the pricing game rules," BILTOKI 2001-04, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
- Miklós-Thal, Jeanine, 2008. "Delivered pricing and the impact of spatial differentiation on cartel stability," International Journal of Industrial Organization, Elsevier, vol. 26(6), pages 1365-1380, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.