Author: Jonathan H. HamiltonPublisher:
ISBN:
Category : Price discrimination
Languages : en
Pages : 21
Book Description
Competitive Spatial Price Discrimination with Capacity Constraints
Author: Jonathan H. HamiltonPublisher:
ISBN:
Category : Price discrimination
Languages : en
Pages : 21
Book Description
Spatial Competition and Price Discrimination with Capacity Constraints
Author: Matthias HunoldPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
We characterize mixed-strategy equilibria when capacity constrained suppliers can charge location-based prices to different customers. We establish an equilibrium with prices that weakly increase in the costs of supplying a customer. Despite prices above costs and excess capacities, each supplier exclusively serves its home market in equilibrium. Competition yields volatile market shares and an inefficient allocation of customers to firms. Even ex-post cross-supplies may restore efficiency only partly. We show that consumers may benefit from price discrimination whereas the the firms make the same profits as with uniform pricing. We use our findings to discuss recent competition policy cases and provide hints for a more refined coordinated-effects analysis.
Theory of Spatial Pricing and Market Areas
Author: Melvin L. GreenhutPublisher: Durham, N.C. : Duke University Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 284
Book Description
Essays on Competitive Spatial Price Discrimination
Author: Barnali GuptaPublisher:
ISBN:
Category : Economics
Languages : en
Pages : 176
Book Description
Spatial Competition and Spatial Price Discrimination
Author: George NormanPublisher:
ISBN:
Category : Human engineering
Languages : en
Pages :
Book Description
Spatial Competition and Spatial Price Discrimination
Author: George NormanPublisher:
ISBN:
Category : Competition
Languages : en
Pages : 25
Book Description
Spatial Price Integration in Competitive Markets with Capacitated Transportation Networks
Author: Ian Yihang ZhuPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
In this thesis, we examine the relationship between the equilibrium prices of spatially separated market participants and the transportation network that connects them; we focus in particular on isolating the effect that the transportation network can have on price integration. We first find that certain network structures and link costs can guarantee a bound on price differences between spatially separated participants when there are no capacity constraints. We extend this analysis to the case when there are binding transportation constraints, and generalize the effects of the transportation network on price integration using a time series decomposition. We then develop an empirical methodology, termed the submarket detection method (SDM), which can be used to infer when binding transportation constraints exist by analyzing regional pricing data from a competitive market, and conclude by using the SDM in a case study of the US gasoline market.
Capacity-constrained Price Competition when Unit Costs Differ
Author: Raymond DeneckerePublisher:
ISBN:
Category : Competition
Languages : en
Pages : 94
Book Description
A Theoretical Analysis of the Effects of Spatial Competition on Pricing
Author: Chao-shun HungPublisher:
ISBN:
Category : Economics
Languages : en
Pages : 354
Book Description
Spatial Price Discrimination with Heterogeneous Firms
Author: Jonathan VogelPublisher:
ISBN:
Category : Price discrimination
Languages : en
Pages : 0
Book Description
In this paper we present and solve a three-stage game of entry, location, and pricing in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique characterization of all pure undominated strategy SPNE without imposing restrictions on the distribution of marginal costs or the allocation of transportation costs between firms and consumers.