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Nonlinearity of Delivered Price Schedules and Predatory Pricing

Econometrica 1977 45(8), 1871
[The sets of local demand functions which would generate either linear or nonlinear schedules in a heterogenous as well as homogeneous space economy are determined by iterative applications of the separation of variables technique for solving differential equations. Nonlinear delivered price schedules which reflect profit maximization objectives are thereby identifiable. In turn, these schedules can be distinguished from those which involve strictly predatory price behavior.]

Spatial Pricing Patterns in the United States

Quarterly Journal of Economics 1980 94(2), 329
This paper is an empirical extension of spatial price theory with results being established by selected statistical approaches, namely multiple linear regression and Chow's test. The locational pattern of competitors as well as varying intensities of competition at different spatial market points are found to play dominant roles in determining the pricing patterns of American firms. Differences in the price practices of firms of different states are identified, and price discrimination over geographic space is found to be the most prevalent pricing technique.

Observations on the Shape and Relevance of the Spatial Demand Function

Econometrica 1975 43(4), 669
[The purpose of this paper is to set forth a general theorem on the shape of free spatial market demand curve and on the shape of the spatial competitive market demand curve. It is demonstated that the free spatial demand curve is necessarily convex to the origin regardless of the shape of the shape of the individual demands which comprise it. But the shape of the spatial competitive market deamnd curve is shown to depend upon the behavioral assumptions used in the competitive. Three basically different competitive models are presented with contrasting results. Elasticity and price effects under each type of competition are determined and evaluated as is the effect of spatial competition on prices. Different interpretations of price data tend to result from conceptions of aggregate spatial demand curves vis a vis the classical spaceless demand curve.]