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- Title
PRICING UNDER SPATIAL COMPETITION AND SPATIAL MONOPOLY: A COMMENT.
- Authors
Treble, John G.
- Abstract
The article comments on a paper by D.R. Capozza and R. Van Order who claim to demonstrate that there exist conditions under which a competitive firm in industry equilibrium in a spatial environment will charge a higher mill price than a spatial monopolist. The article argues that the results is not necessarily correct. There is an apparent error in the three sentences following equation (27). The positive roots of equation (27) are both possible candidates for equilibrium price. The difficulty is that there are no grounds for choosing between the two roots within the structure of the model.
- Subjects
ECONOMIC equilibrium; ECONOMICS; STATICS &; dynamics (Social sciences); ECONOMIC stabilization; MARKET equilibrium; MONOPOLIES; ECONOMETRIC models; ECONOMETRICS; PRICES; PRICING; COMPETITION; INDUSTRIES
- Publication
Econometrica, 1980, Vol 48, Issue 5, p1327
- ISSN
0012-9682
- Publication type
Article
- DOI
10.2307/1912189