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FOB Mill Pricing and Plant Location when Demand is Linear but Non-uniform

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  • Yeung-Nan Shieh

    (Department af Economics, San Jose State University, San Jose, CA 95192, USA and at the University of Alaska, Fairbanks, Alaska)

Abstract

This paper examines the impact of non-uniform linear demand on plant location under FOB mill pricing. It shows that the principle of median location and the Rydell principle fail to apply, and some well-established results in plant location theory no longer hold when demand is linear but non-uniform.

Suggested Citation

  • Yeung-Nan Shieh, 1990. "FOB Mill Pricing and Plant Location when Demand is Linear but Non-uniform," Urban Studies, Urban Studies Journal Limited, vol. 27(5), pages 719-723, October.
    • Handle: RePEc:sae:urbstu:v:27:y:1990:i:5:p:719-723
    DOI: 10.1080/00420989020080681
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    References listed on IDEAS

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    3. Beckmann, Martin J, 1988. "Spatial Price Policy and the Distribution of Scientific Journals," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 22(0), pages 1-7, February.
    4. JASKOLD GABSZEWICZ, Jean & THISSE, Jacques-François, 1986. "Spatial competition and the location of firms," LIDAM Reprints CORE 713, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Shieh, Yeung-Nan, 1989. "The beckmann-zipf effect and plant location under uniform pricing," Economics Letters, Elsevier, vol. 30(1), pages 89-92.
    6. Greenhut, M. L. & Mai, Chao-Cheng & Norman, George, 1986. "Impacts on optimum location of different pricing strategies, market structures and customer distributions over space," Regional Science and Urban Economics, Elsevier, vol. 16(3), pages 329-351, August.
    7. Beckmann, Martin J., 1989. "A note on spatial price policy when demand is linear but non-uniform," Regional Science and Urban Economics, Elsevier, vol. 19(1), pages 103-106, February.
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