THE OUTPUT EFFECTS OF SPATIAL PRICE DISCRIMINATION REVISITED

ABSTRACT Some prior findings on spatial price discrimination are extended. Under certain spatially defined market conditions, discriminatory pricing is known to yield greater output than does nondiscriminatory f.o.b. mill pricing. However, this seemingly surprising result is based on the form of the...

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Bibliographic Details
Published inJournal of regional science Vol. 28; no. 1; pp. 83 - 87
Main Authors Ohta, H., Wako, T.
Format Journal Article
LanguageEnglish
Published Oxford, UK Blackwell Publishing Ltd 01.02.1988
Regional Science Research Institute
Blackwell Publishers Inc
Subjects
Discrimination
Mathematical models
Output
Price variance
Pricing policies
Space
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Summary:ABSTRACT Some prior findings on spatial price discrimination are extended. Under certain spatially defined market conditions, discriminatory pricing is known to yield greater output than does nondiscriminatory f.o.b. mill pricing. However, this seemingly surprising result is based on the form of the basic demand function which is relatively less convex than a certain standard curve. The present paper makes this prior result more general by permitting the assumed basic demand to be relatively more convex.
Bibliography:The authors are grateful to anonymous referees for their helpful comments and suggestions.
ark:/67375/WNG-LWKND37L-V
ArticleID:JORS83
istex:86BB8AA43B86F784BB20D62DBBAD998DD58FBC90
ISSN:0022-4146
1467-9787
DOI:10.1111/j.1467-9787.1988.tb01197.x