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Monopoly Output under Alternative Spatial Pricing Techniques: Reply

Melvin L. Greenhut; Hiroshi Ohta

Our 1972 paper originally proposed that discriminatory outputs are necessarily greater than nondiscriminatory outputs under conditions of spatial monopoly. This proposition was proved under a linear demand function and in a sense generalized in the same paper by intuitive speculation which indicated that the result would hold for non-linear demand cases as well. That speculation was confirmed later in our 1975 book, where we proved that it holds for all non-linear demands of the particular form given by

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