Some Aspect of Price Discrimination Under Vertical Integration

Limit pricing under third-degree price discrimination

We consider an incumbent who operates in two independent markets and has private information about his production cost. In one of the markets, there is a potential entrant o¤ering a di¤erentiated product. The most reasonable perfect bayesian equilibrium is either the least cost separating equilibrium or the pooling equilibrium where both types of incumbents set the low cost monopoly prices. The...

Vertical integration, separation and non-price discrimination: An empirical analysis of German electricity markets for residential customers

Price Discrimination ∗

In broad terms, one can say that price discrimination exists when two “similar” products which have the same marginal cost to produce are sold by a firm at different prices.1 This practice is often highly controversial in terms of its impact on both consumers and rivals. This chapter aims to explain some of the main economic motives for price discrimination, and to outline when this practice wi...

Price Discrimination ∗

journey, same date, same time, same comfort class) is sold at different prices1. ∗We gratefully acknowledge travel funding from the CNRS and NSF under grants INT9815703 and GA10273, and research funding under grant SES 0452864 . We thank Anita Anderson, Alain Béraud, Catherine de Fontenay, Robin Lindsey, André de Palma, Emile Quinet, and Sarah Tulman for their comments and suggestions. We would...

Price Discrimination

The Web site of computer manufacturer Dell asks prospective buyers to declare whether they are a home user, small business, large business or government entity. Two years ago, the price of a 512MBmemory module, part number A0193405, depended on which business segment one declared. At that time, Dell quoted $289.99 for a large business, $266.21 for a government agency, $275.49 for a home, and $2...