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FOB or uniform delivered prices: strategic choice and welfare effects

Article Abstract:

The article shows that FOB mill pricing is used more with highly competitive markets, and uniform delivered (UD) prices with less competition. Mixed pricing appears in equilibrium situations. UD pricing offers higher welfare.

Author: Sexton, Richard J., Zhang, Mingxia

Publisher: Blackwell Publishers Ltd.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 2001

Crop Production, Farms, Analysis, Agricultural industry, Competition (Economics), Marketing, Influence, Farmers, Delivered pricing

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Why do suppliers charge larger buyers lower prices?

Article Abstract:

Research into the reasons behind lower prices for larger buyers in wholesale industries is given. The research shows that suppliers can lower the level of tacit collusion its buyers can sustain in their output market.

Publisher: Blackwell Publishers Ltd.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 2001

Wholesale Trade, Research, Wholesale industry, Pricing, Distributors (Commerce)

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Subjects list: United States

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