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On the output criterion for price discrimination

Paolo Bertoletti ()

Economics Bulletin, 2009, vol. 29, issue 4, 2951-2956

Abstract: We argue that the output criterion for price discrimination is not robust to the introduction of even arbitrarily small marginal cost differences. However, welfare improvements can be validly assessed by replacing it with the computation of well-known price indexes which are not informatively more demanding.

Keywords: third-degree price discrimination; uniform pricing; price indexes (search for similar items in EconPapers)
JEL-codes: D1 D4 (search for similar items in EconPapers)
Date: 2009-11-24
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