Price discrimination under online–offline competition

Wen-Chung Guo and Fu-Chuan Lai

Economics Letters, 2022, vol. 216, issue C

Abstract: Third-degree online price discrimination can improve welfare when the online–offline​ cross-demand parameter is large, even though the total outputs remain unchanged. However, if the online firm competes with a uniform-pricing chain store, online discrimination will reduce welfare. Extensive discussions on different slopes, a leader–follower game, and general multiple markets are provided.

Keywords: Online price discrimination; Online–offline competition; Local markets; Social welfare; Cross demand (search for similar items in EconPapers)
JEL-codes: D43 L13 L40 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:216:y:2022:i:c:s0165176522001811

DOI: 10.1016/j.econlet.2022.110602

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