Competitive differential pricing

نویسندگان

چکیده

This paper analyzes welfare under differential versus uniform pricing across oligopoly markets that differ in costs of service. We establish necessary and sufficient conditions on demand properties---cross/own elasticities curvature---for by symmetric firms to raise aggregate consumer surplus, profit, total welfare. The analysis reveals intuitively why is generally beneficial though not always---including profit can fall, unlike for monopoly---and it more than oligopoly third-degree price discrimination. When have asymmetric costs, however, reduce or surplus even with `simple' demands such as linear.

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ژورنال

عنوان ژورنال: The RAND Journal of Economics

سال: 2021

ISSN: ['0741-6261', '1756-2171']

DOI: https://doi.org/10.1111/1756-2171.12363