Spatial Price Policies Revisited
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.
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Volume (Year): 7 (1976)
Issue (Month): 2 (Autumn)
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