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Iceberg Transport Costs I. Monopoly

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Author Info
Martinez-Giralt, X.
Usategui, J.M.

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Abstract

We present a model of spatial competition where transport costs are dependent on the price the monopolist sets in the market. Several specifications of the transport costs are modeled. We find that, in contrast with a standard Hotelling model, the monoplist decides to cover all the market ragardless of both the reservation price and the size of the market in all cases but one.

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Publisher Info
Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 399.97.

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Length: 18 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:aub:autbar:399.97

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Related research
Keywords: MONOPOLIES;

Find related papers by JEL classification:
L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly

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This page was last updated on 2009-12-15.

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