Nonlinearity of Delivered Price Schedules and Predatory Pricing

Competition and Multiplant Monopoly with Spatial Nonlinear Pricing

“…pricing as is shown by Greenhut [1956], Holahan [1975], Beckmann [1976], Greenhut and Greenhut [1977] and Norman [1977], nonlinear pricing will dominate f.o.b. Welfare is greater than under local price discrimination, uniform mill pricing and uniform delivered pricing.…”

“…The consumer's purchase5 xN=xN(r) satisfies the self-selection condition 4 The spatial competition and free entry framework of ULsch [1954] is re-examined in an important paper by Norman [1981]. Note that Greenhut and Greenhut [1977] discuss nonlinearity of delivered price schedules with alternative demand specifications in a local price discrimination model. pricing, they must choose discriminatory pricing to maintain normal profits.…”

Heterogeneous Space in Regional Economics and Beyond

“…11 We repeat reference to the J. Greenhut and Greenhut (1977) paper which showed 'in conformance to classical homogeneous landscape assumptions' that a strict f.o.b. mill price system could, itself, be derived from a spatially discriminating price system, and we propose consideration of d' Aspremont et al (1983), Coyte et al (1989), Eaton and Lipsey (1978), Norman (1981), Norman and Nichols (1982), Gee (1985), Lederer and Hurter (1986), Macleod et al (1988), Thisse and Vives (1988) on factors yielding spatial price differentials.…”

“…A decade later the concept advanced to the empirical level in a study of price-cost 10 The J. Greenhut and Greenhut (1977) paper recognized that spatial price discrimination could in fact apply under a constant net-mill price, given the demands p = (c/b) − (1/b) ln q, b > 0, and c generally > 0, throughout the firm's homogeneous market space. Such demand type is quite extreme, which of course was the point of the article.…”

“…The J Greenhut and Greenhut (1977). paper recognized that spatial price discrimination could in fact apply under a constant net-mill price, given the demands p = (c/b) − (1/b) ln q, b > 0, and c generally > 0, throughout the firm's homogeneous market space.…”