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Fob Or Uniform Delivered Pricing: Strategic Choice And Welfare Effects

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  • Zhang, Mingxia
  • Sexton, Richard J.
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    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.

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    File URL: http://purl.umn.edu/21667
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1999 Annual meeting, August 8-11, Nashville, TN with number 21667.

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    Date of creation: 1999
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    Handle: RePEc:ags:aaea99:21667

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    Keywords: Demand and Price Analysis; Marketing;

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    1. 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 175-87, September.
    2. Beckmann, Martin J. & Ingene, Charles A., 1976. "The profit equivalence of mill and uniform pricing policies," Regional Science and Urban Economics, Elsevier, vol. 6(3), pages 327-329, September.
    3. ANDERSON, Simon P. & de PALMA, André & THISSE, Jacques-François, . "Spatial price policies reconsidered," CORE Discussion Papers RP -838, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Greenhut,Melvin L. & Norman,George & Hung,Chao-Shun, 1987. "The Economics of Imperfect Competition," Cambridge Books, Cambridge University Press, number 9780521315647, 9.
    5. Greenhut, Melvin L, 1981. "Spatial Pricing in the United States, West Germany and Japan," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 48(189), pages 79-86, February.
    6. Maria Paz Espinosa, 1992. "Delivered Pricing, FOB Pricing, and Collusion in Spatial Markets," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 64-85, Spring.
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