SPATIAL PERFECT COMPETITION: A UNIFORM DELIVERED PRICING MODEL |
| |
| Authors: | Hiroshi Ohta Yan-Shu Lin Masa K Naito |
| |
| Institution: | Aoyama Gakuin University, Tokyo, JapanNational Dong Hwa University, TaiwanNiigata University, Niigata, Japan |
| |
| Abstract: | Abstract. Spatial competition is often probed in terms of spatial oligopoly and/or monopolistic competition in the literature. This paper considers spatial competition as a form of perfect competition, in the sense that the firms are assumed to be price-takers located at the centre of a market area and practising uniform pricing. It shows that under scale economy competitive equilibria can occur, and may actually be observed in the form of international price differentials. Both a very high price and a very low price can yield conditions of competitive equilibrium in spatially or otherwise separate markets. |
| |
| Keywords: | |
|
|
