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Cost and Price Effects of Concentration Restrictions in the Plant Location Problem

Author

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  • B. W. Bobst
  • M. V. Waananen

Abstract

Restrictions which prevent monopolization of spatial markets are imposed on the plant location problem for agricultural processing industries. The antitrust laws are assumed to be the source of these restrictions. Restricted and unrestricted solutions for an example problem and for the fluid milk processing industry in the state of Washington are compared. The restraints are shown to alter spatial organizations in such a way as to increase industry costs, but they also reduce the latitude for spatial price discrimination which may exist in unrestricted organizations.

Suggested Citation

  • B. W. Bobst & M. V. Waananen, 1968. "Cost and Price Effects of Concentration Restrictions in the Plant Location Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(3), pages 676-686.
    • Handle: RePEc:oup:ajagec:v:50:y:1968:i:3:p:676-686.
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    File URL: http://hdl.handle.net/10.2307/1238267
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    Cited by:

    1. Martin, Larry & Hedley, H.A., 1975. "An Analysis of Structural Change in the Ontario Feed Milling Sector," Working Papers 245020, University of Guelph, Department of Food, Agricultural and Resource Economics.
    2. Cassidy, P.A. & McCarthy, W.O. & Toft, H.I., 1970. "An Application Of Spatial Analysis To Beef Slaughter Plant Location And Size, Queensland," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 14(1), pages 1-20, June.

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