研討日期

201672日上午10:20 ~ 12:00

研討地點

台大社會科學院710討論室

主講題目

Location and Pricing Strategies in Spatially Separate Markets

作者

Chih-Min She and Ya-Po Yang

文獻出處

working paper

主講人

楊雅博

參加人員

楊雅博、陳金盛、施全、黃鴻、張瑞雲、蔡明芳、梁文榮、林燕淑、王光正、丁虹仁、周冰瑤、呂得成、暳陵、林晏如、佘志民、曹古駒、張博涵、劉乙人

摘要

We examine the location choice of a supplier and the associated welfare in a straight line model where two markets of different size exist on the two endpoints. There is a retailer in each market who purchases goods from the only supplier charging either uniform or discriminatory mill prices on the two retailers. The fixed cost incurred by the retailers turns out to be crucial in determining the location of the supplier and the associated welfare. It is found that under discriminatory pricing, the supplier always locates in the big market. However, under uniform pricing, when the market asymmetry is small, a higher fixed cost causes the supplier to locate in an interior segment, and even at an interior point somewhat biased to the small market if the fixed cost is high enough. In addition, both total output and social welfare are higher under discriminatory pricing. When the market asymmetry is large, a higher fixed cost pushes the supplier towards the small market, even to the small market if the fixed cost is high enough, moreover, total output may be smaller, but social welfare is higher under discriminatory pricing.