PRICING POLICY REACTIONS TO AGGLOMERATION IN A MARKET WITH SPATIAL SEARCH*

ABSTRACT. Price dispersion (variation) and agglomeration are common characteristics of spatial markets, in particular, markets with imperfect consumer information and search. However, pricing and location strategies in these markets are not well analyzed since spatial search is difficult to model without restricting the spatial dimension of the problem. This paper analyzes pricing and location strategies in a market with spatid search using a probabilistic modeling strategy that does not restrict search patterns in the plane. Specifically, the analysis considers the pricing strategy of an isolated firm in response to the agglomeration of competing firms. Results indicate that spatial and temporal price dispersion are effective responses to competitors'agglomeration. However, the relative effectiveness of these strategies varies with market conditions. In addition, agglomeration can have some counterintuitive effects. This paper also provides insights into existing theories of spatial search and spatial competition in spatially-restricted (linear and circular) markets.     

Custom and habit(us): The meaning of traditions and legends in early medieval western Britain.

This paper discusses some well–known legends and hagiographic stories, and explores the context of their production and consumption. From an examination of Welsh foundation legends and Cornish hagiographical accounts, we focus on the methods by which versions of history were used in the Middle Ages to provide a context for fundamental changes in the way in which society was organised. It is found that, far from abandoning traditional versions of history, accounts of the past were promoted that sought to couch newer territorial notions of organisation within existing constructions of identity and mediations with the past. In an examination of the production and reception of these popular stories, we attempt to relate the legends to the generation of communal identity and memory. Consequently, drawing on Bourdieu's notion of habitus, we argue that pre–existing beliefs and customs were an important part in the development of newer institutional structures. Rather than initiating new practices that had no grounding in any particular past, institutional developments gained social currency by being inherently grounded in existing facets of cultural identity. In essence therefore, changing societal and institutional structures were unintentionally couched in the language and understandings of existing structures, so that in many ways a concept of continuity was at the very heart of actual change.