Spatial aspects of retail market structure: beef pricing revisited

Article Abstract:

A review of the links between commuting characteristics and concentration is an important part of an analysis of spatial retail markets with multiplant companies and conjectural differences. Using the specific example of retail beef prices, commuting characteristics are found to have a significant impact on prices, and this indicates that if these characteristics were used in market definition, then a considerable concentration measure would arise. If the narrow retail market definition implied by the spatial retail model were applied, there would be a considerable concentration/price connection.

Management and Public Relations, Management science

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Quality choice and vertical integration

Article Abstract:

Analysis shows that two independent, disintegrated monopolists will produce goods of a quality lower than that of the goods produced by a sole integrated monopolist. Analysis also indicates that the integrated monopolist will attain greater market coverage, higher consumer surplus and better profits. These results can be explained by the interaction of double-marginalization and choice of quality, a phenomenon which is more likely to occur in a market of independent monopolists.

Product quality, Vertical integration, Duopolies

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