Monopoly Price Discrimination and Demand Curvature

Iñaki Aguirre, Simon Cowan and John Vickers

American Economic Review, 2010, vol. 100, issue 4, 1601-15

Abstract: This paper presents a general analysis of the effects of monopolistic third-degree price discrimination on welfare and output when all markets are served. Sufficient conditions — involving straightforward comparisons of the curvatures of the direct and inverse demand functions in the different markets — are presented for discrimination to have negative or positive effects on social welfare and output. (JEL D42)

JEL-codes: D42 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/aer.100.4.1601
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Citations: View citations in EconPapers (195)

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