Monopoly Price Discrimination and Demand Curvature-Reference-Cited by-同舟云学术

Monopoly Price Discrimination and Demand Curvature

Published:2010-09-01 Issue:4 Volume:100 Page:1601-1615
ISSN:0002-8282
Container-title:American Economic Review
language:en
Short-container-title:American Economic Review

Author:

Aguirre Iñaki¹,Cowan Simon²,Vickers John³

Affiliation:

1. Departamento de Fundamentos del Análisis Económico I, University of the Basque Country, Avda. Lehendakari Aguirre 83, 48015-Bilbao, Spain.

2. Department of Economics, University of Oxford, Manor Road Building, Manor Road, Oxford OX1 3UQ, UK.

3. All Souls College, Oxford OX1 4AL, UK.

Abstract

This paper presents a general analysis of the effects of monopolistic third-degree price discrimination on welfare and output when all markets are served. Sufficient conditions—involving straightforward comparisons of the curvatures of the direct and inverse demand functions in the different markets—are presented for discrimination to have negative or positive effects on social welfare and output. (JEL D42)

Publisher

American Economic Association

Subject

Economics and Econometrics

Link

https://pubs.aeaweb.org/doi/pdf/10.1257/aer.100.4.1601

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