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"A simple calculation shows that the best discriminatory price
increases at half the rate of transportation costs: The monopolist charges
a monopolistic mill price, po=(a-b/c)/2b, which depends on the
function and on marginal cost only, and he absorbs half the freight to the
buyers'location (ref.to Singer 1937).... It means that the nearby
customers whose demand is relatively inelastic are charged relatively
more, in relations to cost, than the distant customers." (Beckmann, 1968, p.31).
GLOSSARY: Spatial Demand Theory
Article on Super Bookstores ("Midnight Special Bookstore Annoyed by Superstores." These articles present some of the anger and difficulties that "superstores" have created for independent bookstores and their communities.)
Literature: (Spatial Competition)
Jovanovic, Miroslav N., Geography of Production and Economic Integration. London: Routledge, 2001. [HF 1025 J66 2001 Suzz] Ch.3: "Market Structure and Geography of Production, pp.75ff.
Todt, Horst, "Wettbewerb durch Standortwahl inder Flaeche: Die Cournot- und die Stackelberg-Loesung," in: Behnke et al, (Todt, editor) Beitrage zur Standortforschung. Schriften des Vereins fuer Socialpolitik, Band 227, 1994 (Duncker & Humblot), pp.75ff. [HT 388 B45 1994]