Journal article
Regulating monopoly price discrimination
- Abstract:
- A monopolist sells its product in separated markets. The effects of requiring a uniform profit margin instead of monopoly pricing are assessed. A margin equal to the output-weighted arithmetic mean of the monopoly margins raises consumer surplus but reduces total output. When the margin equals the (lower) harmonic mean total output exceeds the monopoly level if the demand functions are convex, and social welfare rises. Extensions cover a uniform price- marginal cost ratio and a uniform margin when the initial price is uniform and costs differ. The analysis uses convexity relations and the implications of profit-maximization.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
Actions
Access Document
- Files:
-
-
(Preview, Version of record, pdf, 444.9KB, Terms of use)
-
- Publisher copy:
- 10.1007/s11149-018-9361-2
Authors
- Publisher:
- Springer Verlag
- Journal:
- Journal of Regulatory Economics More from this journal
- Volume:
- 54
- Issue:
- 1
- Pages:
- 1–13
- Publication date:
- 2018-07-02
- Acceptance date:
- 2018-06-11
- DOI:
- EISSN:
-
1573-0468
- ISSN:
-
0922-680X
- Keywords:
- Pubs id:
-
pubs:857021
- UUID:
-
uuid:ee291a37-bda2-4116-9123-9b15200b8249
- Local pid:
-
pubs:857021
- Source identifiers:
-
857021
- Deposit date:
-
2018-06-12
Terms of use
- Copyright holder:
- © Cowan 2018
- Copyright date:
- 2018
- Notes:
- This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
- Licence:
- CC Attribution (CC BY)
If you are the owner of this record, you can report an update to it here: Report update to this record