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Spatial Price Discrimination and Mill Pricing: Hypermobile Multiplant Monopoly

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  • Claycombe, Richard J

Abstract

For almost two decades a literature has accumulated claiming that a monopolist can have better performance in terms of output, price, and welfare if it employs spatial price discrimination rather than mill pricing. This view is, however, based on the notion of a spatially isolated firm. This paper offers an alternative view of spatial monopoly where firms are contiguous under both pricing schemes and shows how this approach yields findings in favor of mill pricing. Copyright 1991 by Blackwell Publishing Ltd.

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  • Claycombe, Richard J, 1991. "Spatial Price Discrimination and Mill Pricing: Hypermobile Multiplant Monopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 39(6), pages 723-728, December.
    • Handle: RePEc:bla:jindec:v:39:y:1991:i:6:p:723-28
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    Cited by:

    1. Shin‐kun Peng, 2004. "Spatial Monopoly with Product Differentiation," Southern Economic Journal, John Wiley & Sons, vol. 70(3), pages 646-660, January.

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