While materials based on delivered pricing
will vary, on average material increases FOB Leland, North Carolina will be: water-based coatings will increase by 5%-8%; energy curable materials will increase by 2%-5%; and cold adhesives will increase by 3%-6%.
Moore & Associates' database represents a solid source of actual arrogate market prices including reporting delivered pricing
(in addition to FOB), weight averaging price by amount of usage, and producing an aggregate market price (including spot as well as contract tonnage).
|With a delivered pricing system~, there is a single price at each point in the market (if transportation charges are agreed upon), so price rivalry is eliminated.
It is shown that mill pricing emerges in a delivered pricing model if firms at all production sites are Bertrand competitors; no firm believes that it can affect the total sales made in any given market.
The importance of inquiries on causes and consequences of basing-point pricing and delivered pricing more generally seems to rest on the answers to such questions.
pricing schedule so that all transport costs are passed on to consumers), uniform delivered pricing (each firm contracts to charge all consumers served the same price, irrespective of their locations) and spatial price discrimination (firms set location-specific delivered prices to consumers).
For uniform delivered pricing, equilibrium will not usually exist at all .
The federal judiciary's present, cautious approach to delivered pricing is appropriate.
Delivered pricing litigation seems to be a pure statutory phenomena; our investigation has unearthed no cases under the common law of restraint of trade. Since the advent of federal antitrust legislation, however, plaintiffs have relied on several distinct acts of Congress to bring delivered pricing practices before the courts.
It is common to find that regulations governing the spatial monopolist require uniform delivered pricing in which the firm must absorb most or all transportation costs.(2) It appears that regulated freight absorption by the spatial monopolist is one of those cases that everyone knows about but which no one has bothered to analyze in detail.
It is quite common to find a regulatory requirement that spatial monopolists absorb most, if not all, transportation cost, i.e., that they engage in uniform delivered pricing. Given that this is a clear departure from marginal cost pricing, the conclusion that it is not consistent with welfare maximization follows easily.