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The cost effect in third-degree price discrimination

Journal of Economics, 2013
In 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, 2012
This 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 ...
openaire   +1 more source

Third‐degree Price Discrimination with Fairness‐concerned Consumers

The Manchester School, 2013
This 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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Monopolistic third-degree price discrimination, customer’s patience and welfare

Journal of Economics
zbMATH Open Web Interface contents unavailable due to conflicting licenses.
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Does Third Degree Price Discrimination Reduce Social Welfare? [PDF]

open access: possible, 2005
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.
Debashis Pal, Victor Kaftal
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Third-Degree Price Discrimination under Economies of Scale

Southern Economic Journal, 1994
There has long been a controversy in economics about whether or not a firm with monopoly power should be allowed to exploit its monopoly power by engaging in third-degree price discrimination.' The effect of third-degree price discrimination on welfare is two-fold: (1) output under price discrimination is misallocated because different groups are ...
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Third-Degree Price Discrimination: Apology not Necessary _ Comment

Atlantic Economic Journal, 2012
In this comment, we note that the analysis in Lopez and Molina (2010) is subject to a number of mistakes and various unjustifiable assumptions.
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Market Interdependence and Third-Degree Price Discrimination: Comment [PDF]

open access: possible, 1979
The purpose of this theoretical note is to develop a model of third-degree price discrimination in which the quantities sold in each market are interdependent. We demonstrate in our mathematical model that in this situation the price differential may be explained not only in terms of price elasticity differentials, as is typically shown to be the case,
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