Spatial Competition, Pricing, and Market Power in Transportation: A Dominant Firm Model.

Transport firms compete over space. We develop a dominant firm model of transport services wherein one firm (the railroad) has market power, but competes in space with a competitive alternative (truck-barge). When constrained, the dominant firm prices to “beat the competition”, which impedes efficie...

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Publicado en:Journal of Regional Science Vol. 48; no. 2; pp. 367 - 398
Autores principales: Anderson, Simon P., Wilson, Wesley P.
Formato: Artículo
Publicado: Wiley-Blackwell May 2008
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Spatial Competition, Pricing, and Market Power in Transportation: A Dominant Firm Model.
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          Anderson, Simon P.
          Wilson, Wesley P.
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        Cost
        Mathematical models of economics
        Shipment of goods
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        subj:
          Cost
          Mathematical models of economics
          Shipment of goods
      ab: Transport firms compete over space. We develop a dominant firm model of transport services wherein one firm (the railroad) has market power, but competes in space with a competitive alternative (truck-barge). When constrained, the dominant firm prices to “beat the competition”, which impedes efficiency when demand has some elasticity. We extend the basic model in a number of directions that include the relationship between monopoly prices and the generalized concavity of the shipper demand functions, the effects of multiple terminal markets, the role of joint production (fronthaul-backhaul markets), and the effects of capacity constraints. Reprinted by permission of the publisher.
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