A Simple Model of Entry That Increases Price Levels and Price Dispersion

Zhou Wen ()
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Zhou Wen: Hong Kong University of Science and Technology

The B.E. Journal of Economic Analysis & Policy, 2006, vol. 6, issue 1, 14

Abstract: A monopolist who originally charges a uniform price across all markets may switch to discriminatory pricing upon the entry of a competitor. As a result, intensified competition may lead to more dispersed prices as well as higher prices for some or all consumers.

Keywords: entry; price competition; price discrimination; price dispersion (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (3)

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DOI: 10.2202/1538-0637.1647

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