Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10482621 | Regional Science and Urban Economics | 2014 | 9 Pages |
Abstract
Delivered pricing by a spatial monopoly amounts to third degree price discrimination. Well known results in spatial economics show that the monopolist location choice is efficient under delivered pricing and generally inefficient under mill pricing. By contrast, the present paper shows that if the monopolist sells a durable good, the location is also inefficient under delivered pricing.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Paolo G. Garella,