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Spatial Pricing Patterns in the United States

Author

Listed:
  • John Greenhut
  • M. L. Greenhut
  • Sheng-yung Li

Abstract

This paper is an empirical extension of spatial price theory with results being established by selected statistical approaches, namely multiple linear regression and Chow's test. The locational pattern of competitors as well as varying intensities of competition at different spatial market points are found to play dominant roles in determining the pricing patterns of American firms. Differences in the price practices of firms of different states are identified, and price discrimination over geographic space is found to be the most prevalent pricing technique.

Suggested Citation

  • John Greenhut & M. L. Greenhut & Sheng-yung Li, 1980. "Spatial Pricing Patterns in the United States," The Quarterly Journal of Economics, Oxford University Press, vol. 94(2), pages 329-350.
  • Handle: RePEc:oup:qjecon:v:94:y:1980:i:2:p:329-350.
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    File URL: http://hdl.handle.net/10.2307/1884544
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    Citations

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    Cited by:

    1. Miklós-Thal, Jeanine, 2008. "Delivered pricing and the impact of spatial differentiation on cartel stability," International Journal of Industrial Organization, Elsevier, vol. 26(6), pages 1365-1380, November.
    2. Pal, Debashis & Sarkar, Jyotirmoy, 2002. "Spatial competition among multi-store firms," International Journal of Industrial Organization, Elsevier, vol. 20(2), pages 163-190, February.
    3. repec:bla:buecrs:v:70:y:2018:i:3:p:298-311 is not listed on IDEAS
    4. F. William McElroy, 1997. "Alternatives to the U.S. Antitrust Agency Approach to Market Definition," Industrial Organization 9706003, University Library of Munich, Germany.
    5. Gupta, Barnali & Lai, Fu-Chuan & Pal, Debashis & Sarkar, Jyotirmoy & Yu, Chia-Ming, 2004. "Where to locate in a circular city?," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 759-782, June.
    6. Bart J. Bronnenberg & Sanjay K. Dhar & Jean-Pierre H. Dubé, 2009. "Brand History, Geography, and the Persistence of Brand Shares," Journal of Political Economy, University of Chicago Press, vol. 117(1), pages 87-115, February.
    7. Pires, Cesaltina Pacheco & Sarkar, Soumodip, 2000. "Delivered nonlinear pricing by duopolists," Regional Science and Urban Economics, Elsevier, vol. 30(4), pages 429-456, July.
    8. repec:eee:eneeco:v:76:y:2018:i:c:p:403-410 is not listed on IDEAS
    9. María García & Blas Pelegrín & Pascual Fernández, 2011. "Location strategy for a firm under competitive delivered prices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 1-23, August.
    10. F. William McElroy, 1996. "Alternatives to the U.S. Antitrust Agency Approach to Market Definition," Law and Economics 9606001, University Library of Munich, Germany.

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