The role of an intermediate market within the barbell model
This paper extends Hwang and Mai (Am Econ Rev 80:567–575, 1990 ) with an intermediate market to discuss the spatial pricing and social welfare. It is shown that the monopoly will always locate at this intermediate market under discriminatory pricing. Under simple mill pricing, the intermediate market will be the optimal location if the slope of the demand function at this market is large enough. Moreover, in contrast to Hwang and Mai (Am Econ Rev 80:567–575, 1990 ), the total outputs under discriminatory pricing may be either greater or less than those under simple mill pricing, and social welfare under simple mill pricing is lower (higher) than that under discriminatory pricing if the transport rate is large (low) enough. Copyright Springer-Verlag Berlin Heidelberg 2013
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 6 (2013)
Issue (Month): 3 (November)
|Contact details of provider:|| Web page: http://www.springer.com/|
|Order Information:||Web: http://www.springer.com/economics/journal/12076|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stefano Colombo, 2010.
"Taxation and Predatory Prices in a Spatial Model,"
DISCE - Quaderni dell'Istituto di Economia e Finanza
ief0092, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
- Greenhut, M L & Ohta, H, 1972. "Monopoly Output Under Alternative Spatial Pricing Techniques," American Economic Review, American Economic Association, vol. 62(4), pages 705-13, September.
- Schmalensee, Richard., 1980.
"Output and welfare implications of monopolistic third-degree price discrimination,"
1095-80., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Schmalensee, Richard, 1981. "Output and Welfare Implications of Monopolistic Third-Degree Price Discrimination," American Economic Review, American Economic Association, vol. 71(1), pages 242-47, March.
- Martin J. Beckmann, 1976. "Spatial Price Policies Revisited," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 619-630, Autumn.
- Varian, Hal R, 1985. "Price Discrimination and Social Welfare," American Economic Review, American Economic Association, vol. 75(4), pages 870-75, September.
- 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.
- Stefano Colombo, 2013. "Predation in Space," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(1), pages 9-22, March.
- Kai Andree, 2013.
"Collusion in Spatially Separated Markets with Quantity Competition,"
Journal of Industry, Competition and Trade,
Springer, vol. 13(3), pages 309-318, September.
- Kai Andree, 2011. "Collusion in spatially separated markets with quantity competition," Volkswirtschaftliche Diskussionsbeiträge 104, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
- Holahan, William L, 1975. "The Welfare Effects of Spatial Price Discrimination," American Economic Review, American Economic Association, vol. 65(3), pages 498-503, June.
When requesting a correction, please mention this item's handle: RePEc:spr:lsprsc:v:6:y:2013:i:3:p:151-161. 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: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.