Premium
Cost and Price Effects of Concentration Restrictions in the Plant Location Problem
Author(s) -
Bobst B. W.,
Waananen M. V.
Publication year - 1968
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1238267
Subject(s) - monopolization , economics , agriculture , microeconomics , state (computer science) , industrial organization , natural resource economics , agricultural economics , econometrics , computer science , monopoly , geography , archaeology , algorithm
Restrictions which prevent monopolization of spatial markets are imposed on the plant location problem for agricultural processing industries. The antitrust laws are assumed to be the source of these restrictions. Restricted and unrestricted solutions for an example problem and for the fluid milk processing industry in the state of Washington are compared. The restraints are shown to alter spatial organizations in such a way as to increase industry costs, but they also reduce the latitude for spatial price discrimination which may exist in unrestricted organizations.