Third Degree Price Discrimination in Linear-Demand Markets: Effects on Number of Markets Served and Social Welfare.

We analyze the welfare impact of monopolistic third degree price discrimination when all markets are not necessarily served by uniform pricing. We consider n markets with linear demand curves. Each demand is characterized by the price intercept of the demand curve and by the size of the market, as m...

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Publicado en:Southern Economic Journal Vol. 75; no. 2; pp. 558 - 574
Autores principales: Kaftal, Victor, Pal, Debashis
Formato: Artículo
Publicado: Wiley-Blackwell Oct2008
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Oct2008
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        10.1002/j.2325-8012.2008.tb00919.x
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        atl: Third Degree Price Discrimination in Linear-Demand Markets: Effects on Number of Markets Served and Social Welfare.
      aug:
        au:
          Kaftal, Victor
          Pal, Debashis
        affil:
          Department of Mathematical Sciences, 839 C Old Chemistry Building, University of Cincinnati, Cincinnati, OH 45221, USA
          Department of Economics, 1204 Crosley Tower, University of Cincinnati, Cincinnati, OH 45221
      su:
        Economic policy
        Economic demand
        Restraint of trade
        Pricing
        Price discrimination
        Price maintenance
        Price regulation
        Demand function
        Marketing strategy
      sug:
        subj:
          Economic policy
          Economic demand
          Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors
          Restraint of trade
          Pricing
          Price discrimination
          Price maintenance
          Price regulation
          Demand function
          Marketing strategy
      ab: We analyze the welfare impact of monopolistic third degree price discrimination when all markets are not necessarily served by uniform pricing. We consider n markets with linear demand curves. Each demand is characterized by the price intercept of the demand curve and by the size of the market, as measured by the area under the demand curve. Based on these two exogenous parameters, we establish the necessary and sufficient conditions to determine the number of markets to be served under uniform pricing and the direction of the welfare change under third degree price discrimination.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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