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Fob Or Uniform Delivered Pricing: Strategic Choice And Welfare Effects

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  • Zhang, Mingxia
  • Sexton, Richard J.

Abstract

In most spatial markets, firms use either FOB or uniform delivered pricing, so the competitive factors motivating this choice and its welfare implications are important research questions. Prior work on duopoly using inelastic demands leads to biased results and our model on duopsony with elastic supply eliminates the bias.

Suggested Citation

  • Zhang, Mingxia & Sexton, Richard J., 1999. "Fob Or Uniform Delivered Pricing: Strategic Choice And Welfare Effects," 1999 Annual meeting, August 8-11, Nashville, TN 21667, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21667
    DOI: 10.22004/ag.econ.21667
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    References listed on IDEAS

    as
    1. Amoz Kats & Jacques-François Thisse, 1993. "Spatial Oligopolies with Uniform Delivered Pricing," Palgrave Macmillan Books, in: Hiroshi Ohta & Jacques-François Thisse (ed.), Does Economic Space Matter?, chapter 14, pages 274-302, Palgrave Macmillan.
    2. Schuler, Richard E & Hobbs, Benjamin F, 1982. "Spatial Price Duopoly under Uniform Delivered Pricing," Journal of Industrial Economics, Wiley Blackwell, vol. 31(1-2), pages 175-187, September.
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    Demand and Price Analysis; Marketing;

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