Differential pricing when costs differ: a welfare analysis.
This article analyzes the welfare effects of monopoly differential pricing in the important, but largely neglected, case where costs of service differ across consumer groups. Cost-based differential pricing is shown to increase total welfare and consumer welfare relative to uniform pricing for broad...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 46; no. 2; pp. 442 - 461 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Summer2015
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=102271686&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 102271686 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Summer2015 vid: 46 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 102271686 10.1111/1756-2171.12091 ppf: 442 ppct: 19 formats: fmt: – @attributes: type: T – @attributes: type: P size: 196KB tig: atl: Differential pricing when costs differ: a welfare analysis. aug: au: Chen, Yongmin Schwartz, Marius affil: University of Colorado, Boulder Georgetown University su: Consumer behavior Economic demand Resource allocation Pricing Price discrimination sug: subj: Consumer behavior Economic demand Resource allocation Pricing Price discrimination ab: This article analyzes the welfare effects of monopoly differential pricing in the important, but largely neglected, case where costs of service differ across consumer groups. Cost-based differential pricing is shown to increase total welfare and consumer welfare relative to uniform pricing for broad classes of demand functions, even when total output falls or the output allocation between consumers worsens. We discuss why cost-based differential pricing tends to be more beneficial for consumers than its demand-based counterpart, third-degree price discrimination. We also provide sufficient conditions for welfare-improving differential pricing when costs and demands differ across consumer groups. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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