English, Article edition: The Pricing of Delivery Services Amiya Basu; Charles A. Ingene; Tridib Mazumdar

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Bookmark: http://trove.nla.gov.au/version/167652
Physical Description
  • article
Language
  • English

Edition details

Title
  • The Pricing of Delivery Services
Author
  • Amiya Basu
  • Charles A. Ingene
  • Tridib Mazumdar
Physical Description
  • article
Notes
  • Due to spatial separation between points of distribution and consumption, a vital feature of retailing is the provision of delivery services by customers, retailers, or transport intermediaries. Some store retailers, many Internet retailers, and most transport intermediaries use a "multizone pricing plan" or a "generalized N-zone menu plan". We extend spatial pricing theory to encompass multizone plans. We prove that the optimal number of zones varies with the level of demand "relative" to the spatial dispersion of customers, and with the cost of implementing a zonal plan. We show that a small number of zones capture almost all the profit attainable with a spatially discriminatory plan. Copyright Blackwell Publishing, Inc. 2004
  • RePEc:bla:jregsc:v:44:y:2004:i:4:p:743-772
Language
  • English
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