Uncapacitated Plant Location Under Alternative Spatial Price Policies

Pierre Hanjoul, Pierre Hansen, Dominique Peeters and Jacques Thisse
Additional contact information
Pierre Hanjoul: Department of Geography, Université Catholique de Louvain, Place Louis Pasteur 3, B-1348 Louvain-la-Neuve, Belgium
Pierre Hansen: RUTCOR, Rutgers University, New Brunswick, New Jersey 08903

Management Science, 1990, vol. 36, issue 1, 41-57

Abstract: Given a spatial system of clients' demand functions, this paper proposes solution methods to determine the price(s), the number, the locations, the sizes, and the market areas of the plants supplying the clients in order to maximize the profit of the firm. Three alternative spatial price policies are considered: (i) uniform mill pricing, in which the same price is charged to the clients at the plant door, (ii) uniform delivered pricing, in which clients pay the same delivered price irrespective of their locations, and (iii) spatial discriminatory pricing, which is such that the firm sets client-specific prices based on their locations. Computational results are reported.

Keywords: location theory; economic analysis (search for similar items in EconPapers)
Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.36.1.41 (application/pdf)

Related works:
Working Paper: Uncapacitated plant location under alternative spatial price policies (1990)
Working Paper: Uncapacitated plant location under alternative spatial price policies (1988)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:36:y:1990:i:1:p:41-57

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().