Who Benefits from Pricing Regulations when Economic Space Matters?

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Title:	Who Benefits from Pricing Regulations when Economic Space Matters?
Authors:	麥朝成;Mai, Chao-cheng;Hwang, Hong;Ohta, Hiroshi
Contributors:	淡江大學產業經濟學系
Date:	2010-06
Issue Date:	2011-09-29 10:52:11 (UTC+8)
Publisher:	Japanese Economic Association
Abstract:	Reinterpreting Hwang‐Mai (AER, 1990) by both simplifying and generalizing their analysis in terms of two key demand parameters representing income and market size, we probe the welfare effects of spatial price discrimination to determine how robust the previous welfare findings in the literature are. Endogenous location matters when a monopolist chooses asymmetric location under different pricing schemes. If he/she remained at the same location, outcomes of fixed and endogenous location models must be analytically the same. Endogenous and different location changes outcomes radically. When non‐discriminatory pricing regulations benefit the poor, different transportation burdens mean that the rich become poor, even worse off than the ex‐poor, and the society becomes worse off accordingly.
Relation:	Japanese Economic Review 61(2), pp.218-233
DOI:	10.1111/j.1468-5876.2009.00484.x
Appears in Collections:	[Graduate Institute & Department of Industrial Economics] Journal Article

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