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Spatial Price Policies Revisited

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  • Martin J. Beckmann

Abstract

This paper reexamines the theory of spatial price polices under more general conditions to compare mill pricing, uniform delivered pricing, and discriminatory local pricing and to interpret their implications when market regions are given. The analysis assumes that demand functions are linear and identical in all locations, that marginal production cost is constant, and that transportation cost is proportional to distance. The results go beyond previous findings, but do not seriously contradict them.

Suggested Citation

  • Martin J. Beckmann, 1976. "Spatial Price Policies Revisited," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 619-630, Autumn.
  • Handle: RePEc:rje:bellje:v:7:y:1976:i:autumn:p:619-630
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    Citations

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    Cited by:

    1. Jean-Marc Siroën, 1993. "Marchés contestables, différenciation des produits et discrimination des prix," Revue Économique, Programme National Persée, vol. 44(3), pages 569-592.
    2. Anam, Mahmudul & Chiang, Shin-Hwan, 2006. "Price discrimination and social welfare with correlated demand," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 110-122, September.
    3. Fousekis, Panos, 2011. "Spatial Price Competition Between Cooperatives Under Hotelling – Smithies Conjectures," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2), June.
    4. Chin-Sheng Chen, 2016. "Endogenous market boundary and spatial price discrimination with a quadratic production cost function," Letters in Spatial and Resource Sciences, Springer, vol. 9(2), pages 157-168, July.
    5. Wen-Chung Guo & Fu-Chuan Lai, 2013. "The role of an intermediate market within the barbell model," Letters in Spatial and Resource Sciences, Springer, vol. 6(3), pages 151-161, November.
    6. Zhang, Mingxia & Sexton, Richard J, 2001. "FOB or Uniform Delivered Prices: Strategic Choice and Welfare Effects," Journal of Industrial Economics, Wiley Blackwell, vol. 49(2), pages 197-221, June.
    7. Lin-Ti Tan & Yan-Shu Lin, 2005. "Spatial Monopoly Pricing in a Stochastic Environment," IEAS Working Paper : academic research 05-A004, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    8. Hong Hwang & Chao-Cheng Mai & Hiroshi Ohta, 2010. "Who Benefits From Pricing Regulations When Economic Space Matters?," The Japanese Economic Review, Japanese Economic Association, vol. 61(2), pages 218-233.
    9. Debashis Pal, 1994. "Cournot Competition and Spatial Agglomeration," Microeconomics 9402002, EconWPA.
    10. Martin Beckmann, 1988. "Spatial price policy and the distribution of scientific journals," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 22(1), pages 1-7, February.
    11. Nicholas Economides & Steven S. Wildman, 1995. "Monopolistic Competition with Two-Part Tariffs," Working Papers 95-10, New York University, Leonard N. Stern School of Business, Department of Economics.
    12. Cyrus Chu, C. Y. & Lu, Huei-chung, 1998. "The multi-store location and pricing decisions of a spatial monopoly," Regional Science and Urban Economics, Elsevier, vol. 28(3), pages 255-281, May.
    13. Cheung, Francis K. & Wang, Xinghe, 1995. "Spatial price discrimination and location choice with non-uniform demands," Regional Science and Urban Economics, Elsevier, vol. 25(1), pages 59-73, February.
    14. Mark L. Burkey & Alexandra Kurepa, 2016. "Spatial Nonlinear Pricing with Per-Trip versus Per-Unit Transportation Costs," The Review of Regional Studies, Southern Regional Science Association, vol. 46(3), pages 237-255, Winter.
    15. Chin-Sheng Chen & Hong Hwang, 2014. "Spatial Price Discrimination in Input Markets with an Endogenous Market Boundary," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(2), pages 139-152, September.

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