The welfare effects of third-degree price discrimination.
The welfare effects of third-degree price discrimination are known to be negative when demand functions are linear, marginal cost is constant and all markets are served. This paper shows that discrimination lowers welfare for a more general class of demand functions. Demand varies across markets with additive and multiplicative shift factors. Total welfare (defined as consumer surplus plus profits) with discrimination is lower than with uniform pricing when the density function of consumer va...Expand abstract
- Publication date:
- Local pid:
- Copyright date:
Views and Downloads
If you are the owner of this record, you can report an update to it here: Report update to this record