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THE OUTPUT EFFECTS OF SPATIAL PRICE DISCRIMINATION REVISITED *
Author(s) -
Ohta H.,
Wako T.
Publication year - 1988
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1988.tb01197.x
Subject(s) - economics , price discrimination , mill , econometrics , demand curve , mathematical economics , function (biology) , regular polygon , yield (engineering) , microeconomics , mathematics , geometry , geography , materials science , evolutionary biology , metallurgy , biology , archaeology
Some prior findings on spatial price discrimination are extended. Under certain spatially defined market conditions, discriminatory pricing is known to yield greater output than does nondiscriminatory f.o.b. mill pricing. However, this seemingly surprising result is based on the form of the basic demand function which is relatively less convex than a certain standard curve. The present paper makes this prior result more general by permitting the assumed basic demand to be relatively more convex.