Monopoly Price Discrimination and Demand Curvature

Iñaki Aguirre Pérez, Simon Cowan and John Vickers

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

Abstract: This paper presents a general analysis of the effects of monopolistic third-degree price discrimination on welfare and oputput 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.

Keywords: third-degree price discrimiation; output; monopoly; welfare (search for similar items in EconPapers)
Date: 2009-08
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Citations: View citations in EconPapers (2)

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Journal Article: Monopoly Price Discrimination and Demand Curvature (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ehu:ikerla:6547

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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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