IDEAS home Printed from https://ideas.repec.org/p/ags/aaea10/61225.html
   My bibliography  Save this paper

Location and Spatial Pricing in Agricultural Markets

Author

Listed:
  • Graubner, Marten
  • Balmann, Alfons
  • Sexton, Richard J.

Abstract

Agricultural markets often feature significant transport costs and spatially distributed production and processing which causes spatial imperfect competition. Spatial economics considers the firms’ decisions regarding location and spatial price strategy separately, usually on the demand side, and under restrictive assumptions. Therefore, alternative approaches are needed to explain, e.g., the location of new ethanol plants in the U.S. at peripheral as well as at central locations and the observation of different spatial price strategies in the market. We use an agent-based simulation model to analyze location and spatial pricing in a general model under multi-firm competition, two-dimensional space, and a continuum of potential price strategies. The results show, e.g., that depending on the location of a processor, different price strategies can be observed, spatial price discrimination can increase with the number of competitors, and elasticity in the producers’ supply functions can be identified as stabilizing factor of processor’s location.

Suggested Citation

  • Graubner, Marten & Balmann, Alfons & Sexton, Richard J., 2010. "Location and Spatial Pricing in Agricultural Markets," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61225, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61225
    DOI: 10.22004/ag.econ.61225
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/61225/files/Poster11342.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.61225?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea10:61225. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.