This paper presents a model of spatial equilibrium that integrates elements of spatial pricing and Thünen location models. Properties of equilibrium under mill, uniform, and discriminatory pricing regimes are explored. Three comparative propositions concerning firm, consumer, and landowner welfare that obtain under the alternative pricing schemes are presented. The welfare findings contrast with those found in the extant spatial pricing literature. In particular, the superiority of mill pricing from a consumer welfare perspective is questioned.

The quadratic Box-Cox approach is examined to determine its usefulness in demand research. In the absence of information about hedonic price and household demand structures, the flexible form is invaluable in both stages of the Rosen demand estimation procedure. The quadratic Box-Cox form permits a statistical investigation of a wide variety of specific hypotheses concerning specifications. Commonly-used functional forms in both the hedonic and demand stages are shown in the samples to be founded upon unacceptably restrictive hypotheses. The impact of changes in functional form upon demand-elasticity estimates and benefit estimates justify concern over the functional form-selection process. 8 references, 4 tables.