FOB OR UNIFORM DELIVERED PRICING: STRATEGIC CHOICE AND WELFARE EFFECTS

Mingxia Zhang and Richard J. Sexton

No 21667, 1999 Annual meeting, August 8-11, Nashville, TN from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: In most spatial markets, firms use either FOB or uniform delivered pricing, so the competitive factors motivating this choice and its welfare implications are important research questions. Prior work on duopoly using inelastic demands leads to biased results and our model on duopsony with elastic supply eliminates the bias.

Keywords: Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Pages: 14
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea99:21667

DOI: 10.22004/ag.econ.21667

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