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An Operational Model For Spatial Price Theory

Author

Listed:
  • John G. Greenhut

    (Arizona State University West)

  • Dean H. Smith

    (Northern Arizona University)

Abstract

This paper uses the basic properties of a general model of spatial pricing and distribution to establish an operational model that is free of many standard restrictive assumptions. In particular, the landscape viewed is not subject to the usual homogeneity assumptions of (1) an even distribution of identical buyers and (2) constant freight rates. Rather, heterogenous distributions and demands of varying forms are assumed. The operational form that is constructed herein would enable empirical testing and application over a broad range of industries and countries. A few case examples are included in the paper to help characterize the data that empirical studies could discover in a world of heterogeneities among buyers and landscapes.

Suggested Citation

  • John G. Greenhut & Dean H. Smith, 1993. "An Operational Model For Spatial Price Theory," The Review of Regional Studies, Southern Regional Science Association, vol. 23(2), pages 115-128, Fall.
    • Handle: RePEc:rre:publsh:v23:y:1993:i:2:p:115-128
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    References listed on IDEAS

    as
    1. Greenhut, John G & Greenhut, M L, 1975. "Spatial Price Discrimination, Competition and Locational Effects," Economica, London School of Economics and Political Science, vol. 42(168), pages 401-419, November.
    2. Hamilton, Jonathan H. & Thisse, Jacques-Francois & Weskamp, Anita, 1989. "Spatial discrimination : Bertrand vs. Cournot in a model of location choice," Regional Science and Urban Economics, Elsevier, vol. 19(1), pages 87-102, February.
    3. Ben-Akiva, Moshe & de Palma, Andre & Thisse, Jacques-Francois, 1989. "Spatial competition with differentiated products," Regional Science and Urban Economics, Elsevier, vol. 19(1), pages 5-19, February.
    4. Morris A. Copeland, 1940. "Competing Products and Monopolistic Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 55(1), pages 1-35.
    5. Greenhut,Melvin L. & Norman,George & Hung,Chao-Shun, 1987. "The Economics of Imperfect Competition," Cambridge Books, Cambridge University Press, number 9780521315647.
    6. A. Smithies, 1941. "Optimum Location in Spatial Competition," Journal of Political Economy, University of Chicago Press, vol. 49, pages 423-423.
    7. De Palma, Andre & Pedro Pontes, Jose & Thisse, Jacques-Franco, 1987. "Spatial competition under uniform delivered pricing," Regional Science and Urban Economics, Elsevier, vol. 17(3), pages 441-449, August.
    8. Benjamin H. Stevens & C. Peter Rydell, 1966. "Spatial Demand Theory And Monopoly Price Policy," Papers in Regional Science, Wiley Blackwell, vol. 17(1), pages 195-204, January.
    9. Greenhut,Melvin L. & Norman,George & Hung,Chao-Shun, 1987. "The Economics of Imperfect Competition," Cambridge Books, Cambridge University Press, number 9780521305525.
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