Spatial competition and flexible manufacturing with spatially discriminatory pricing

Auteur(s) et Affiliation(s)

KUANG-CHENG, A.W.

Dept. of Industrial and Business Management, Chang Gung Univ., Gueishan, Taiwan, Province de Chine

DIN, H.R.

. Dept. of Tourism and Hospitality, TransWorld Univ., Douliu, Taiwan, Province de Chine

WENG-JUNG, L.

Dept. of Economics, National Dong-Hwa Univ., Hualien, Taiwan, Province de Chine

Description :
This paper develops a two-dimensional spatial framework, in which firms have the technique of flexible manufacturing and engage in spatially discriminatory pricing, in order to explore the firms’ optimal locations and optimal attributes of basic products under linear transportation costs. It shows that the two firms will agglomerate at the center of the location line and the optimal attributes of the two basic products will be located at the first and third quartiles of the attribute line, respectively, when the ratio of the marginal modification rate to the transport rate is high. It also shows that they will locate separately on the location line and that the optimal attributes of the two basic products will remain at the first and third quartiles, when this ratio is moderate. Moreover, this paper proves that the two firms will locate at the first and third quartiles of the location line, respectively, and that the attributes of the basic products will agglomerate at the center of the attribute line, when this ratio is low.

Type de document :
Article de périodique

Source :
The Annals of regional science, issn : 0570-1864, 2014, vol. 53, n°. 1, p. 295-314, nombre de pages : 20, Références bibliographiques : 17 ref.

Date :
2014

Editeur :
Pays édition : Allemagne, Berlin, Springer

Langue :
Anglais