Pricing policies under conditions of spatial competition.

Compares the profit performance of different pricing policies under conditions of monopolistic competition. Three alternative pricing policies are considered: 1) uniform f.o.b. price; 2) uniform delivered price, 3) a generalized basing point system. A comparison among the three is done from: 1) the single sellers' point of view; and 2) a market equilibrium point of view. It is shown that the individual seller is not indifferent between the alternative pricing policies. Therefore, it follows that some price policies are inconsistent with a Nash type market equilibrium with free entry.-from Author