A NOTE ON THE STRATEGIC CHOICE OF SPATIAL PRICE-DISCRIMINATION

Authors
EBER N
Citation
N. Eber, A NOTE ON THE STRATEGIC CHOICE OF SPATIAL PRICE-DISCRIMINATION, Economics letters, 55(3), 1997, pp. 419-423
Citations number
4
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
55
Issue
3
Year of publication
1997
Pages
419 - 423
Database
ISI
SICI code
0165-1765(1997)55:3<419:ANOTSC>2.0.ZU;2-R
Abstract
We investigate the robustness of the tendency for Hotelling duopolists to use spatial price discrimination. In a model with quadratic transp ortation costs, mill pricing is shown to emerge as the unique equilibr ium outcome when firms commit to a price policy before choosing locati ons and price levels. (C) 1997 Elsevier Science S.A.