Welfare-increasing third-degree price discrimination.

When demand functions in different markets are derived from distributions of reservation prices that differ only in their means, conditions exist such that third-degree price discrimination leads to greater total output and greater total welfare. Welfare is higher with discrimination than with a uni...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 47; no. 2; pp. 326 - 341
Autor principal: Cowan, Simon
Formato: Artículo
Publicado: Wiley-Blackwell Summer2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Welfare-increasing third-degree price discrimination.
      aug:
        au: Cowan, Simon
        affil: University of Oxford
      su:
        Economic demand
        Public welfare
        Markets
        Price discrimination
        Surplus (Economics)
      sug:
        subj:
          Economic demand
          Public welfare
          Markets
          Other Individual and Family Services
          Administration of Human Resource Programs (except Education, Public Health, and Veterans' Affairs Programs)
          Emergency and Other Relief Services
          Health and Welfare Funds
          Price discrimination
          Surplus (Economics)
      ab: When demand functions in different markets are derived from distributions of reservation prices that differ only in their means, conditions exist such that third-degree price discrimination leads to greater total output and greater total welfare. Welfare is higher with discrimination than with a uniform price when demand functions are derived from logistic distributions with different means. Welfare and consumer surplus are higher with discrimination for demands derived from a distribution related to the Pareto. In general, whether discrimination increases total output depends on demand being more convex in markets in which prices fall with discrimination than in those in which prices rise.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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