| Author: | Coyte, P. C. Lindsey, C. R. |
| Title: | Spatial monopoly and spatial monopolistic competition with two-part pricing. (!Price discrimination) |
| Journal: | Economica
1988 : VOL. 55:220, p. 461-477 |
| Index terms: | PRICING MONOPOLY COMPETITION |
| Language: | eng |
| Abstract: | A model of spatial price discrimination by two-part pricing is developed when sellers cannot discriminate between consumers by bearing freight or by nonlinear pricing. Sellers can be interpreted as clubs with which consumer become members or non-members. The two-part tariff comprises a membership fee and a price for each time a seller's facility or store is used. Competition with free entry and costless relocation leads to closer spacing than monopoly. Welfare is lower than under monopoly except at high levels of fixed cost per store. |
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