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Spatial Pricing Policies Reconsidered: Monopoly Performance and Location.
- Source :
-
Journal of Regional Science . Nov2001, Vol. 41 Issue 4, p601. 15p. 1 Diagram, 4 Charts. - Publication Year :
- 2001
-
Abstract
- This paper reexamines the welfare implications of three pricing regimes (mill, uniform, and discriminatory) for a monopoly. Assuming linear demand and constant marginal costs, I show that with the introduction of endogenous location choice, uniform delivered pricing may provide the highest social welfare when demands in different markets are sufficiently heterogeneous; whereas discriminatory pricing always dominates uniform pricing when demands in different markets are similar. [ABSTRACT FROM AUTHOR]
- Subjects :
- *PRICING
*MONOPOLIES
*ECONOMIC demand
Subjects
Details
- Language :
- English
- ISSN :
- 00224146
- Volume :
- 41
- Issue :
- 4
- Database :
- Academic Search Index
- Journal :
- Journal of Regional Science
- Publication Type :
- Academic Journal
- Accession number :
- 5628491
- Full Text :
- https://doi.org/10.1111/0022-4146.00234