Differences in spatial pricing in the United States: A statistical analysis and case studies

Abstract

This paper focuses attention on spatial pricing patterns of American firms. It identifies price strategies by statistical comparison of firms in Colorado with those located elsewhere in the United States. Competitive factors are found generally to dominate the pricing schedules of firms in other states, while the pricing schedules of Colorado firms are found to be influenced chiefly by demand patterns. Multi-product case examples are presented which spotlight pricing differences between firms located in a distributional-center type of state, such as Colorado, and those in other states. The eases also help explain why certain variables were uniquely important in Colorado.