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Letters in Spatial and Resource Sciences

, Volume 9, Issue 2, pp 137–144 | Cite as

Spatial price discrimination, monopoly upstream and convex costs downstream

  • Gabriel CoureyEmail author
Original Paper

Abstract

Under spatial price discrimination a critical cost of an upstream monopoly is the resulting distortion in downstream locations. While this is well-established for linear production costs it is examined here for the first time for convex production costs. Convex production costs create their own location distortions yet it is shown that the presence of the upstream monopoly has a smaller influence on efficiency with such costs.

Keywords

Spatial price discrimination Convex costs Monopoly upstream 

JEL Classification

L1 R3 

References

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Copyright information

© Springer-Verlag Berlin Heidelberg 2015

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of Wisconsin-MilwaukeeMilwaukeeUSA

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