Summary: | 碩士 === 淡江大學 === 產業經濟學系碩士班 === 95 === Although prior studies on simple monopoly spatial price theory have bend conducted in a world with fixed market area, a firm in the real world often confronts the market with various sizes. In order to fully understand that how does the firm react to the market size vary, this paper attempts to examine the relative economic advantages under alternative pricing policies in a world with two basic assumptions. One is non-linear demand function and another is the market size, which is treated as a parameter in the model. We will show that as the market size increases, the optimal uniform delivered price increases, but the optimal price under mill pricing decreases. Moreover and more importantly, we will show that in a world with varying market size, some findings obtained by prior studies in regard to the economic benefit comparison between alternative pricing policies no longer hold.
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