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Endogenous Pricing Modes in Markets for Inputs

In: Does Economic Space Matter?

Author

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  • B. Curtis Eaton
  • Nicolas Schmitt

Abstract

Today in North America commercial dairies typically transport raw milk from the dairy farmers to their processing plants, while fifty years ago it was the dairy farmers who transported the raw milk. In the salmon fishery in the Pacific north-west, fishers sometimes transport their catch to the fish processor, and processors sometimes buy the fish on the fishing grounds, transporting the catch to their own processing plants. On the Canadian prairies, wheat farmers usually transport the wheat they grow to the grain elevator. In most labour markets, the seller accepts responsibility for getting to work, but this is not universally the case; harvest labour, for example, is often transported to the work site by the buyer. And in some labour markets the responsibility is shared — the company provides the car and the petrol, and the employee the time needed to get to and from work.

Suggested Citation

  • B. Curtis Eaton & Nicolas Schmitt, 1993. "Endogenous Pricing Modes in Markets for Inputs," Palgrave Macmillan Books, in: Hiroshi Ohta & Jacques-François Thisse (ed.), Does Economic Space Matter?, chapter 18, pages 352-373, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-22906-2_19
    DOI: 10.1007/978-1-349-22906-2_19
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    Cited by:

    1. Mingxia Zhang & Richard J. Sexton, 2001. "FOB or Uniform Delivered Prices: Strategic Choice and Welfare Effects," Journal of Industrial Economics, Wiley Blackwell, vol. 49(2), pages 197-221, June.

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