The Implications of Quantity-Discounted Transportation Rates on the Optimum Location Decisions of Free Entry Oligopoly

摘要: This paper examines the theoretical implication of quantity-discounted transportation rates on impact a change market demand optimum location decisions undifferentiated oligopolistic firms within Weber-Moses triangle. Assume that are function quantity shipped and distance traveled. We show is independent in if linear. consistent with well-known Mai-Hwang results constant rates. It indicates Mai Hwang proposition more general than it appears. further an increase may move closer to (away from) output when concave (convex). These significantly different from discounted have important influence firms.