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Price Discrimination, Competition and Regulation.

Abstract:

This paper analyzes some effects of price discrimination policy in a model where a dominant incumbent firm faces an endogenous degree of competition in one of its two markets. Banning price discrimination tends to encourage more entry, which is desirable if the entrant is as efficient as the incumbent but has ambiguous welfare effects more generally. Prices in both markets might fall. Price discrimination policy under different forms of price regulation is also examined. If the incumbent's a...

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Series:
Discussion paper series
Publication date:
1992-01-01
URN:
uuid:d2682cab-51fb-4611-9cb5-5bbb64c34158
Local pid:
oai:economics.ouls.ox.ac.uk:12122
Language:
English

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