A generalized spatial price model /
| Main Author: | |
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| Other Authors: | , , , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1989.
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| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=745019181&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Abstract: | Spatial pricing theories point towards the optimal pricing strategies of spatially dependent firms. The classical spatial model analyzes the effects on a firm's pricing behaviour of a set of demand curves which do not vary with the location of the buyers. Unfortunately, the model typically assumes away the complications arising from joint analysis of demand functions with alternative cost functions as it has emphasized the constant marginal cost of production case. Recently, the generalization of this cost problem has been addressed by use of optimal control theory. (Greenhut and Norman 1986; Greenhut, Norman, and Hung 1987). This dissertation explains the advantage in using optimal control mathematics in the field of spatial price theory besides stressing the validity of the results that stem from its use. It is shown that while the classical static model suffices for simple problems, more ambitious ones can best be handled by use of Optimal Control Theory. The first chapter introduces important terms and discusses the general spatial pricing problem as a dynamic problem. The chapter that follows will then detail the methodological rationale for incorporating Optimal Control Theory (hereafter OCT) into the analysis of spatial price theory. Essentially, this is done by showing the interdependence that exists between the producer's pricing decisions at different points in space. Having shown in Chapter II the need for OCT, Chapter III then presents the initial mathematical theorems that are essential for the analysis of the our problem . Chapter IV advances our potential uses of OCT techniques by developing theorems to be used in boundary condition problems and multivariate analysis. With a mathematical toolkit in hand. Chapter V returns to the economic problem of spatial pricing policies, which chapter discusses the general forms of the behavioral equations of interest when studying spatial pricing. Chapter VI provides a thorough analysis o f a sample spatial pricing model, with the emphasis being placed on the construction of the model and the pricing strategy conclusions. Chapter VII concludes this work with heuristic discussions of some possible extensions and applications of the previous chapter. |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Economics." |
| Physical Description: | x, 294 leaves : illustrations ; 29 cm |
| Bibliography: | Includes bibliographical references. |