Spatial equilibrium with footloose firms
Article Abstract:
The price-location equilibria for a duopoly was described using an alternative solution concept. Prices were chosen first before the location. This orientation is logical if there is substantial price rigidity and location sites are relatively flexible. Results show that agglomeration is the only path to equilibria unless consumers are faced with a no-purchase option. This indicates that firm competition will affect price and location, depending on game structure or price flexibility with relation to location.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 1992
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Pricing in an Urban Spatial Monopoly: A Reply
Article Abstract:
The Standard Spatial Monopoly (SSM) Model is explained. It shows the way in which rate reductions on final product shipments could increase certain customer prices. The research also addressed the issue of spatial monopolist behavior regarding uniform pricing stategy. Mathematical proofs of the inverse relationship are reviewed. The integral definition of free spatial demand function for a given product is analyzed. Freight neutrality is most probably an empirical issue.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 1984
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