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Fob Or Uniform Delivered Pricing: Strategic Choice And Welfare Effects

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  • Zhang, Mingxia
  • Sexton, Richard J.

Abstract

In most spatial markets, firms use either FOB or uniform delivered pricing, so the competitive factors motivating this choice and its welfare implications are important research questions. Prior work on duopoly using inelastic demands leads to biased results and our model on duopsony with elastic supply eliminates the bias.

Suggested Citation

  • Zhang, Mingxia & Sexton, Richard J., 1999. "Fob Or Uniform Delivered Pricing: Strategic Choice And Welfare Effects," 1999 Annual meeting, August 8-11, Nashville, TN 21667, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21667
    DOI: 10.22004/ag.econ.21667
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    References listed on IDEAS

    as
    1. Amoz Kats & Jacques-François Thisse, 1993. "Spatial Oligopolies with Uniform Delivered Pricing," Palgrave Macmillan Books, in: Hiroshi Ohta & Jacques-François Thisse (ed.), Does Economic Space Matter?, chapter 14, pages 274-302, Palgrave Macmillan.
    2. Schuler, Richard E & Hobbs, Benjamin F, 1982. "Spatial Price Duopoly under Uniform Delivered Pricing," Journal of Industrial Economics, Wiley Blackwell, vol. 31(1-2), pages 175-187, September.
    3. Hiroshi Ohta & Jacques-François Thisse (ed.), 1993. "Does Economic Space Matter?," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-22906-2, December.
    4. Martin J. Beckmann, 1976. "Spatial Price Policies Revisited," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 619-630, Autumn.
    5. Greenhut,Melvin L. & Norman,George & Hung,Chao-Shun, 1987. "The Economics of Imperfect Competition," Cambridge Books, Cambridge University Press, number 9780521315647.
    6. Partha Dasgupta & Eric Maskin, 1986. "The Existence of Equilibrium in Discontinuous Economic Games, I: Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 1-26.
    7. repec:bla:econom:v:48:y:1981:i:189:p:79-86 is not listed on IDEAS
    8. Maria Paz Espinosa, 1992. "Delivered Pricing, FOB Pricing, and Collusion in Spatial Markets," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 64-85, Spring.
    9. Anderson, Simon P & de Palma, Andre & Thisse, Jacques-Francois, 1989. "Spatial Price Policies Reconsidered," Journal of Industrial Economics, Wiley Blackwell, vol. 38(1), pages 1-18, September.
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    11. Beckmann, Martin J. & Ingene, Charles A., 1976. "The profit equivalence of mill and uniform pricing policies," Regional Science and Urban Economics, Elsevier, vol. 6(3), pages 327-329, September.
    12. Greenhut,Melvin L. & Norman,George & Hung,Chao-Shun, 1987. "The Economics of Imperfect Competition," Cambridge Books, Cambridge University Press, number 9780521305525.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Demand and Price Analysis; Marketing;

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