Heterogeneous space in regional economics and beyond

John G. Greenhut, Dean Howard Smith

Research output: Contribution to journalArticlepeer-review

Abstract

This paper points to the multiple forces which establish differential prices and outputs over heterogeneous space. Such space clearly applies to a regional economy where costly distance provides opportunities for sellers to discriminate in price among customers. Similar discriminatory opportunities may be created in a spaceless world through, for example, product differentiation and the passage of time. It is in this broad perspective that a generalized theory of discriminatory spatial pricing is formulated. Simulations reveal a remarkable panoply of cost, price, and output relationships, highlighting the criticality of variations in elasticity in determining macro, micro, and regional economic behaviour.

Original languageEnglish (US)
Pages (from-to)431-448
Number of pages18
JournalPacific Economic Review
Volume11
Issue number4
DOIs
StatePublished - Dec 2006

ASJC Scopus subject areas

  • Economics and Econometrics

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