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ON THIRD-DEGREE PRICE DISCRIMINATION IN OLIGOPOLY*
The Manchester School, 2006In this paper we analyse the effects of third-degree price discrimination on output, profit and welfare in a symmetric cost duopoly. We provide sufficient conditions for output, profit and welfare to be higher (or lower) under third-degree price discrimination in a duopoly, compared with a uniform price regime.
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Comparison Between Second and Third Degree Price Discrimination
SSRN Electronic Journal, 2006This pedagogical note discusses the differences between second and third-degree price discrimination. The comparison uses four important factors, namely, market segmentation, information about consumers, profit maximization and social welfare. The comparison shows that while market segmentation is a prerequsite for third-degree, it is an equilibrium ...
Babu Nahata +2 more
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Location choices and third‐degree spatial price discrimination
Scottish Journal of Political Economy, 2018AbstractThis paper studies how firms choose their product differentiation levels when they engage in third‐degree price discrimination in the following product market competition in a location‐price model. We show that firms will not choose to locate at the two endpoints if different consumer groups have similar sizes.
Hong Feng, Jie Ma
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International Journal of Industrial Organization, 2023
Takanori Adachi
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Takanori Adachi
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Third-degree Price Discrimination, Heterogeneous Markets and Exclusion
2017This short paper analyzes the effect of heterogeneity of markets in terms of income on the exclusion of markets under uniform price by considering linear demand curves in all markets. We show that more markets (and consumers) are excluded the higher are the inter-market income differences, and that adding markets, even with lower reservation prices ...
He, Young, Sun, Guang-Zhen
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Monopolistic third-degree price discrimination, welfare, and vertical market structure
Review of Economic Design, 2021Xingtang Wang, Lin Zhang
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The cost effect in third-degree price discrimination
Journal of Economics, 2013In the presence of a non-constant marginal cost and demand uncertainty, we show that an output increase is no longer a necessary condition for welfare to increase following the introduction of third-degree price discrimination. We thus highlight the existence of an effect that might offset the well known output and misallocation effects of price ...
Francisco Galera +2 more
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Third-Degree Price Discrimination with Fairness-Concerned Consumers
SSRN Electronic Journal, 2012This paper studies monopolistic third‐degree price discrimination, incorporating consumers' fairness concerns: discriminatory pricing antagonizes consumers and may reduce their demand. In contrast to the findings in previous studies, we show that consumers' concerns regarding price inequalities may deter discriminatory pricing by monopolists ...
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