Price Variation in Spatial Markets: The Case of Perfectly Inelastic Demand
This paper analyzes short-run price variation in one-dimensional (i.e., circular, linear) spatial markets where both producers and consumers are numerous. Price reaction functions are established for firms under symmetrical price conjectures. For perfectly inelastic consumer demand each firm's equilibrium price is shown to depend upon distance-decay in these effects is inversely related to the degree of price conjectural variation in the market. Boundary effects in spatial markets are also shown to influence these distance-decay rates and, thus, patterns of firms' equilibrium prices.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 23 (1989)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://link.springer.de/link/service/journals/00168/index.htm|
More information through EDIRC
|Order Information:||Web: http://link.springer.de/orders.htm|
When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:23:y:1989:i:3:p:187-201. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.