Spatial price discrimination, sequential location and convex production costs
Gabriel Courey ()
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Gabriel Courey: Wittenberg University
Letters in Spatial and Resource Sciences, 2018, vol. 11, issue 2, No 9, 223-232
Abstract Simultaneous location is known to be socially superior to sequential location under spatial price discrimination given constant marginal production costs. For the first time I demonstrate that sequential location can be socially superior to simultaneous location given convex production costs. The asymmetric sequential locations lower the sum of production and transport cost below the symmetric but inefficiently distant simultaneous locations.
Keywords: Spatial price discrimination; Sequential location; Social welfare; Convex production costs (search for similar items in EconPapers)
JEL-codes: L1 R3 (search for similar items in EconPapers)
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