EconPapers    
Economics at your fingertips  
 

Spatial monopoly pricing under non-constant marginal costs

Marten Graubner ()
Additional contact information
Marten Graubner: Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

Letters in Spatial and Resource Sciences, 2020, vol. 13, issue 1, No 6, 97 pages

Abstract: Abstract The firm’s price policy decision is a central issue in spatial economics. Previous results show, e.g., that the specification of consumers’ demand functions is pivotal but mostly mill and uniform pricing are compared in a monopoly setting with constant marginal costs. The results in this paper highlight that some conclusions of prior work do not hold if the monopolist operates under non-constant marginal production costs. For instance, the optimal price is no longer independent of transport costs, and the welfare ranking of mill and uniform pricing also depends on the shape of the cost function.

Keywords: Spatial pricing; Price discrimination; Monopoly (search for similar items in EconPapers)
JEL-codes: D42 L11 R32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s12076-020-00246-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:spr:lsprsc:v:13:y:2020:i:1:d:10.1007_s12076-020-00246-1

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12076

DOI: 10.1007/s12076-020-00246-1

Access Statistics for this article

Letters in Spatial and Resource Sciences is currently edited by Henk Folmer and Amitrajeet A. Batabyal

More articles in Letters in Spatial and Resource Sciences from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-08-29
Handle: RePEc:spr:lsprsc:v:13:y:2020:i:1:d:10.1007_s12076-020-00246-1