EconPapers    
Economics at your fingertips  
 

Market Opening under Third-Degree Price Discrimination

Stephen Layson

Journal of Industrial Economics, 1994, vol. 42, issue 3, 335-40

Abstract: There are frequently regulatory and antitrust pressures for firms to cease price discrimination and practice uniform pricing. Such pressures, however, generally have negative welfare consequences when they lead to weaker markets not being served. This paper derives conditions that determine when price discrimination will induce service to a market (market opening) that would not be served under a regime of price uniformity. The factors that favor market opening under price discrimination are a large market share for the strong market, profit margins in the two markets that are far apart, and concave rather than convex demand curves. Copyright 1994 by Blackwell Publishing Ltd.

Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (27) Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819940 ... 0.CO%3B2-P&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:42:y:1994:i:3:p:335-40

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-08-31
Handle: RePEc:bla:jindec:v:42:y:1994:i:3:p:335-40