Basing Point Pricing System - Definition
Written by Jason Gordon
Updated at December 17th, 2020
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What is a Basing Point Pricing System?
Basing point pricing, or base point pricing, refers to a pricing system whereby a company ensures its prices are determined by two components - a base price for the product and freight cost from product shipping.
Usually, the basing point and the manufacturing point are at the same location, and the distance of the customer or delivery location from that point determines the charge for shipping.
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Academic Research on Base Point Pricing
- Basing-point pricing: Competitive vs. collusive theories, Haddock, D. D. (1982). The American Economic Review, 72(3), 289-306.
- Basing point pricing: Competition versus collusion, Thisse, J. F., & Vives, X. (1992). The journal of industrial economics, 249-260.
- Basing point pricing and public policy, Kaysen, C. (1949). The Quarterly Journal of Economics, 63(3), 289-314.
- Restrictive Incidence of Basing Point Pricing on Regional Development, Johnson, W. S. (1948). Geo. LJ, 37, 149.
- On the strategic choice of spatial price policy, Thisse, J. F., & Vives, X. (1988). The American Economic Review, 122-137.
- Basing-point pricing and the Stahlwerksverband: An examination of the New Competitive School, Hughes, J. W., & Barbezat, D. P. (1996). The Journal of Economic History, 56(1), 215-222.
- Basing point pricing and production concentration, Soper, J. B., Norman, G., Greenhut, M. L., & Benson, B. L. (1991). The Economic Journal, 101(406), 539-556.
- Imperfect competition theory and basing-point problems, Clark, J. M. (1943). The American Economic Review, 33(2), 283-300.
- Pricing objectives in large companies, Lanzillotti, R. F. (1958). The American Economic Review, 48(5), 921-940.
- Delivered pricing and multiple basing point equilibria: a reevaluation, DeCanio, S. J. (1984). The Quarterly Journal of Economics, 99(2), 329-349.
- Delivered pricing, FOB pricing, and collusion in spatial markets, Espinosa, M. P. (1992). The Rand Journal of Economics, 64-85.