The effect of government taxation policies on spatial monopoly

Article Abstract:

Government sales tax (or subsidy) strongly influences both the monopolist's pricing decisions and the structure of social benefits. Three spatial pricing policies of monopolies, mill, pricing and discriminatory, are analyzed. These are then compared with the results of a study of the relative economic benefits of alternative spatial pricing policies on the presence of taxes or subsidies. Results show a strong effect on the pricing mechanism of a monopoly when a sales tax or subsidy is imposed.

Influence, Sales tax, Spatial systems

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Bilateral monopoly and industrial location: a cooperative outcome

Article Abstract:

A cooperative bilateral monopoly can attain profit maximization through negotiations of optimal locations. The model shows that there may exist intermediate locations for the buyer and the seller. The optimum locations of the buyer and the seller are also affected by rising energy costs. The impact of the latter on optimum locations, in turn, depends on the nature of the production function. These results are found to be different from previous research.

Industrial locations, Industrial location

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Bilateral monopolies and location choice

Article Abstract:

A duopoly is modeled in which downstream firms acquire inputs through bilateral monopoly relations with upstream input suppliers. A strategic advantage associated with facing a relatively strong upstream firm in bargaining is identified, implying that the firm facing the stronger input supplier has an incentive to relocate toward its rival, while the rival has the opposite incentive.

Models, Analysis, Supply and demand

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