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Spatial Oligopolies with Uniform Delivered Pricing

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Abstract

Space allows firms to implement a large variety of price policies, depending on the way transportation costs are passed on to customers. Somewhat surprisingly, the bulk of the work on spatial price theory has been focused on the study of mill pricing (see Gabszewicz and Thisse, 1986, for a recent survey). It is probable that the main reason for this emphasis lies in the close connection between spatial competition with mill prices and the model of product differentiation à la Hotelling-Lancaster (see, for example, Eaton and Lipsey, 1989, for further details).

The authors acknowledge very valuable comments by Helmuth Cremer, Claude d’Aspremont and Jonathan Hamilton.

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References

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© 1993 Hiroshi Ohta and Jacques-François Thisse

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Kats, A., Thisse, JF. (1993). Spatial Oligopolies with Uniform Delivered Pricing. In: Ohta, H., Thisse, JF. (eds) Does Economic Space Matter?. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-22906-2_15

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