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Spatial Price Policies Revisited

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  • Martin J. Beckmann
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    Abstract

    This paper reexamines the theory of spatial price polices under more general conditions to compare mill pricing, uniform delivered pricing, and discriminatory local pricing and to interpret their implications when market regions are given. The analysis assumes that demand functions are linear and identical in all locations, that marginal production cost is constant, and that transportation cost is proportional to distance. The results go beyond previous findings, but do not seriously contradict them.

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    Bibliographic Info

    Article provided by The RAND Corporation in its journal Bell Journal of Economics.

    Volume (Year): 7 (1976)
    Issue (Month): 2 (Autumn)
    Pages: 619-630

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    Handle: RePEc:rje:bellje:v:7:y:1976:i:autumn:p:619-630

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    Cited by:
    1. Anam, Mahmudul & Chiang, Shin-Hwan, 2006. "Price discrimination and social welfare with correlated demand," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 110-122, September.
    2. Cyrus Chu, C. Y. & Lu, Huei-chung, 1998. "The multi-store location and pricing decisions of a spatial monopoly," Regional Science and Urban Economics, Elsevier, vol. 28(3), pages 255-281, May.
    3. Zhang, Mingxia & Sexton, Richard J, 2001. "FOB or Uniform Delivered Prices: Strategic Choice and Welfare Effects," Journal of Industrial Economics, Wiley Blackwell, vol. 49(2), pages 197-221, June.
    4. Wen-Chung Guo & Fu-Chuan Lai, 2013. "The role of an intermediate market within the barbell model," Letters in Spatial and Resource Sciences, Springer, vol. 6(3), pages 151-161, November.
    5. Martin Beckmann, 1988. "Spatial price policy and the distribution of scientific journals," The Annals of Regional Science, Springer, vol. 22(1), pages 1-7, February.
    6. Cheung, Francis K. & Wang, Xinghe, 1995. "Spatial price discrimination and location choice with non-uniform demands," Regional Science and Urban Economics, Elsevier, vol. 25(1), pages 59-73, February.
    7. Debashis Pal, 1994. "Cournot Competition and Spatial Agglomeration," Microeconomics 9402002, EconWPA.
    8. Lin-Ti Tan & Yan-Shu Lin, 2005. "Spatial Monopoly Pricing in a Stochastic Environment," IEAS Working Paper : academic research 05-A004, Institute of Economics, Academia Sinica, Taipei, Taiwan.

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