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Price Discrimination with Producer & Consumer Transaction Costs

Gregory Randolph

Economics Bulletin, 2012, vol. 32, issue 1, 370-375

Abstract: This paper examines the impact of transaction costs on the social efficiency of first-degree price discrimination. Price discrimination requires the producer to expend resources and compels consumers to incur costs. The consideration of producer and consumer transaction costs alters the conditions under which first degree price discrimination enhances social welfare.

Keywords: Price Discrimination; Social Welfare; Transaction Costs (search for similar items in EconPapers)
JEL-codes: D4 L1 (search for similar items in EconPapers)
Date: 2012-01-25
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