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Spatial Perfect Competition: A Uniform Delivered Pricing Model

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  • Hiroshi Ohta
  • Yan‐Shu Lin
  • Masa K. Naito

Abstract

. Spatial competition is often probed in terms of spatial oligopoly and/or monopolistic competition in the literature. This paper considers spatial competition as a form of perfect competition, in the sense that the firms are assumed to be price‐takers located at the centre of a market area and practising uniform pricing. It shows that under scale economy competitive equilibria can occur, and may actually be observed in the form of international price differentials. Both a very high price and a very low price can yield conditions of competitive equilibrium in spatially or otherwise separate markets.

Suggested Citation

  • Hiroshi Ohta & Yan‐Shu Lin & Masa K. Naito, 2005. "Spatial Perfect Competition: A Uniform Delivered Pricing Model," Pacific Economic Review, Wiley Blackwell, vol. 10(4), pages 407-420, December.
    • Handle: RePEc:bla:pacecr:v:10:y:2005:i:4:p:407-420
    DOI: 10.1111/j.1468-0106.2005.00282.x
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    References listed on IDEAS

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    1. Phlips,Louis, 1983. "The Economics of Price Discrimination," Cambridge Books, Cambridge University Press, number 9780521283946, October.
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    Cited by:

    1. Gunther Maier, 2009. "Spatial prices, search behavior and location," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 27-48, March.
    2. Hong Hwang & Chao‐Cheng Mai & Hiroshi Ohta, 2010. "Who Benefits From Pricing Regulations When Economic Space Matters?," The Japanese Economic Review, Japanese Economic Association, vol. 61(2), pages 218-233, June.
    3. repec:rre:publsh:v:38:y:2008:i:1:p:8-28 is not listed on IDEAS

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