On economists and geographers: a response to Harwitz
Article Abstract:
One of the overriding reasons for the use of the profit rate maximization strategy over the total profit maximization strategy in an interdependent market is lies on how economists and economic geographers approach the problem. Economic geographers tend to assume that consumers do not become fully informed in the long run, which would give better credence to a profit-rate maximization strategy. Economists tend to assume that consumers become fully informed in the long run, which results in the profit rate maximization equalling the total profit maximization.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 1998
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A comment on the significance of "Profit-rate maximization in interdependent markets.'
Article Abstract:
One contentious issue in the research of Eric Sheppard and collegues on the profit-rate maximization in interdependent markets is the shift of firms from a total profit maximization strategy to a profit-rate maximization strategy. The use of the total profit maximization strategy makes more sense in that it approaches the Bertrand price competition which is a model known to many economic researchers.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 1998
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Profit-rate maximization in interdependent markets: a research note
Article Abstract:
An examination of the profit maximizing strategies that can be employed in an interdependent market showed that a rate of profit-maximization strategy is better than at maximizing profits than a strategy of total profit-maximizing strategy. This is especially true when such firms act as rational agents in a market with a homogenous product with inelastic total demand.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 1998
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