منابع مشابه
Third-degree Price Discrimination
IN THE LITERATURE OF monopolistic third-degree price discrimination, it has been widely held that a change in aggregate Marshallian social welfare by price discrimination is negative if total output decreases. Among others, Schwartz [1990] verifies this conjecture for any total cost function that depends only on total output, not on its distribution among markets. Letting ∆X and ∆W denote a cha...
متن کاملA Note on Third-degree Price Discrimination
VARIAN [1985] AND SCHWARTZ [1990] PROVED THAT, very generally, monopolistic third-degree price discrimination decreases aggregate welfare if total output falls (a conjecture which dates back to the work of A. C. Pigou, [1920]). In particular, these authors adopted a representative consumer approach (by assuming quasi-linear preferences) and used revealed-preference arguments. En passant, their ...
متن کاملLimit 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...
متن کاملInput third-degree price discrimination by congestible facilities
This paper studies third-degree price discrimination by transport facilities, such as airports and seaports, which sell access to the infrastructure as a necessary input for downstream production. These facilities are prone to congestion –which makes downstream markets interrelated– and their ownership structure is diverse, varying from public (domestic welfare maximizing) to private (profit ma...
متن کاملWelfare and output in third-degree price discrimination: A note
In this note I provide examples to show that, contrary to what is widely believed, when changing from an uniform price to a third-degree price discrimination situation, an improvement in welfare is possible with output reduction, if there is more than one firm.
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ژورنال
عنوان ژورنال: Journal of Industrial Organization Education
سال: 2011
ISSN: 1935-5041
DOI: 10.2202/1935-5041.1030