American Economic Review Vol. 78 No. 1 1988
On The Strategic Choice of Spatial Price Policy
Abstract
Price discrimination emerges as the unique equilibrium outcome in games with either simultaneous choice of policy and price or sequential choice in which firms may commit first to uniform mill pricing before the actual market stage. Our results are used to analyze some common business practices that arise in geographical pricing, like the basing point system, and in the pricing of varieties or options from a base product in a product differentiation context.
- Volume
- 78
- Issue
- 1
- Pages
- 122-137
- Sources
- bibtex:phds-export.bib