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| Author: | Zhang, M. Sexton, R. J. |
| Title: | FOB or uniform delivered prices: strategic choice and welfare effects |
| Journal: | Journal of Industrial Economics
2001 : JUN, VOL. 49:2, p. 197-221 |
| Index terms: | AGRICULTURE COMPETITION PRICING SPATIAL ECONOMICS WELFARE |
| Language: | eng |
| Abstract: | In spatial markets firms typically use either FOB (mill) or uniform delivered (UD) pricing. What competitive factors motivate this choice and what are the welfare implications of the choice? The authors study these questions in a duopsony market, where farmers with unit elastic supply curves sell to processing firms. |
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