Monopoly price discrimination with constant elasticity demand

Iñaki Aguirre and Simon Cowan

IKERLANAK from Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I

Abstract: This paper presents new results on the welfare e¤ects of third-degree price discrimination under constant elasticity demand. We show that when both the share of the strong market under uniform pricing and the elasticity di¤erence between markets are high enough,then price discrimination not only can increase social welfare but also consumer surplus.

Date: 2013-11
New Economics Papers: this item is included in nep-com, nep-ind, nep-mac and nep-mkt
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Citations: View citations in EconPapers (4)

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Journal Article: Monopoly price discrimination with constant elasticity demand (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ehu:ikerla:11103

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Dpto. de Fundamentos del Análisis Económico I, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

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