Agricultural markets often feature significant transport costs and spatially distributed production and processing which causes spatial imperfect competition. Spatial economics considers the firms’ decisions regarding location and spatial price strategy separately, usually on the demand side,...

The article offers measures of own and cross cost pass-through in a structural framework. Unlike the traditional reduced-form analysis used in the previous literature, our approach is applicable in situations where firm marginal cost data are unobserved. The empirical value of the model is...

The endogeneity of retail market power arises in the retail pricing equation due to the correlation between margins and unobserved cost components. Nevertheless, it has long been ignored in the equilibrium analysis of retail behavior. We address the issue via a control function approach in a new...

This paper analyzes spatial competition on land rental markets. It contributes to the small body of literature that investigates the optimal spatial price policy under competition and extents previous work by considering economies of size. Because the consideration of increasing or decreasing...