Multimarket Contact, Price Discrimination and Consumer Welfare
نویسنده
چکیده
This paper investigates the extent to which ...rms choose multimarket contact when there is no possibility of consumer or producer arbitrage across the relevant markets. The degree of multimarket contact is shown to be greater when ...rms o¤er distinctive products and when setup costs are low. Price discrimination increases multimarket contact, bene...tting consumers but harming ...rms. There are cases in which a collusive agreement by ...rms not to invade each others markets is sustainable by a trigger strategy based upon an easily observable deviation.
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