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Basing Point Pricing, Competition and Market Integration

Louis Phlips

Chapter 15 in Does Economic Space Matter?, 1993, pp 303-315 from Palgrave Macmillan

Abstract: Abstract ‘Americans generally consider apple pie, hot dogs, and baseball to be uniquely theirs in origin. Less pride of origin is assigned to the Basing Point System, originally known as Pittsburgh-Plus.’ This is how Greenhut (1987) started his lively description of the origins and competitive properties of the single basing point system as practised in the United States. Let me suggest that Europeans consider Sachertorte, pommes frites and football to be uniquely theirs in origin. Less pride of origin is assigned to the multiple basing point system introduced on the occasion (and because) of the creation (in 1952) of a common market for coal and steel and made mandatory (sic) in Article 60 of the European Coal and Steel Community.

Keywords: Transportation Cost; Price Policy; Market Area; Base Price; Price Leader (search for similar items in EconPapers)
Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-22906-2_16

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DOI: 10.1007/978-1-349-22906-2_16

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