Hiroshi Ohta - Spatial Price Theory of Imperfect Competition (Texas a & M University Economics Series)

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title	:	Spatial Price Theory of Imperfect Competition Texas A & M University Economics Series ; No. 8
author	:	Ohta, H.
publisher	:	Texas A&M University Press
isbn10 | asin	:	089096372X
print isbn13	:	9780890963722
ebook isbn13	:	9780585174884
language	:	English
subject	Prices, Space in economics, Competition, Imperfect.
publication date	:	1988
lcc	:	HB221.O385 1988eb
ddc	:	338.5/2
subject	:	Prices, Space in economics, Competition, Imperfect.

Page i Spatial Price Theory of Imperfect Competition Number Eight: Texas A & M University Economics Series

Page iii Spatial Price Theory of Imperfect Competition By Hiroshi Ohta

Page iv Copyright 1988 by Hiroshi Ohta Manufactured in the United States of America All rights reserved First Edition The paper used in this book meets the minimum requirements of the American National Standard for Permanence of Paper for Printed Library Materials, Z39.48-1984. Binding materials have been chosen for durability. LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA Ohta, H. (Hiroshi), 1940 Spatial price theory of imperfect competition / by H. Ohta. 1st ed. p. cm. (Texas A & M University economics series; no. 8) Bibliography: p. Includes index. ISBN 0-89096-372-X 1. Prices. 2. Space in economics. 3. Competition, Imperfect. I. Title. II. Series. HB221.0385 1988 338.5'2 dc19 87-22333 CIP

Page v To Y.O. and, most gratefully, to the late Professor K. Shibata

Page vii CONTENTS Acknowledgments ix Part I. Nonspatial versus Spatial Theory of Pricing 1. Introduction 3 2. Impact of Economic Space on Monopoly Pricing: A Preliminary View 13 Part II. Fundamentals of Spatial Monopoly Pricing 3. Unconstrained versus Constrained Spatial Monopoly Pricing 29 4. Two Alternative Systems of Constrained Spatial Monopoly Pricing 45 5. Impact of Freight on Monopoly Spatial Pricing 61 6. The Output and Price Effects of Spatial Price Discrimination 78 7. Notes on the Literature of Spatial Price Discrimination 98 Part III. Spatial Competition and Market Areas 8. The Nonoverlapping Market Areas Approach 113 9. The Overlapping Market Areas Approach 127 10. The Price and Market Area Effects of Spatial Competition 144 11. Agglomeration and Competition 164 Part IV. The Welfare Effects of Competition and Growth 12. Spatial Competition and Optimal Location of Industries 189

Page viii 13. Spatial Competition, Innovation, and Related Markets 213 Appendix 235 Index 243

Page ix ACKNOWLEDGMENTS The author is grateful to Professor R. Sato for repeated encouragement and helpful comments on the present study; to Professors M.L. Greenhut, J. Greenhut, M.J. Hwang, and the editors of American Economic Review, Econometrica, Environment and Planning, Journal of Regional Science, Regional Science and Urban Economics, and Review of Economic Studies for permission to use some of our results published either independently or jointly in their journals. In addition, some materials from M.L. Greenhut and H. Ohta, Theory of Spatial Pricing and Market Areas (Durham, N.C.: Duke University Press, 1975) have been used with permission. The author's special thanks go to Martin Bronfenbrenner, Mel Greenhut, Janet Kohlhase, Chao-cheng Mai, and Joel Sailors, who read earlier drafts of this monograph and provided deep insights and invaluable suggestions. The author is also indebted to those individuals who spotted technical and mathematical errors in various stages of the manuscript. These sharp-eyed graduate students include T. Wako, Waseda University; D. Greenstreet, University of Pennsylvania; and M. Naito, Aoyama Gakuin University. This work has been partly supported by a Grant-in-Aid for Scientific Research from the Japan Ministry of Education, Science, and Culture. Chapter 3 is based on M.L. Greenhut and H. Ohta, Theory of Spatial Pricing and Market Areas (Durham, N.C.: Duke University Press, 1975) and M.L. Greenhut, H. Ohta, and J. Greenhut, "Derivation of Optimal Spatial Prices under Spatial Monopoly,"

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