This paper contends that classical spaceless price theory is excessively limited. In contrast, the spatial model provides a robustly general framework such that it even sheds light on the beta statistic in portfolio theory and the capital asset pricing model (CAPM), which led to 1990 Nobels for...

The price of a good prevailing at some local market point may or may not be identical to the price of that same good at another market point. Price differentials over regions depend in part upon the number and locations of firms which sell to these regions, and on the demand curves of buyers....

Contestability has shown how free entry can extend the efficient pricing result of perfect competition to oligopoly (and monopoly) markets. This paper adds another welfare result: production in competitive oligopoly markets will occur at minimum average cost. This comes from a model that is...