Monopolistic third-degree price discrimination under vertical product differentiation

Xuan Nguyen

Economics Letters, 2014, vol. 125, issue 2, 153-155

Abstract: This paper shows in a vertical product differentiation model with variable costs of quality that monopolistic third-degree price discrimination always reduces welfare regardless of whether the quality is fixed or is endogenous. The results provide rich implications for antitrust policy.

Keywords: Endogenous quality; Monopoly; Third-degree price discrimination; Vertical product differentiation; Welfare (search for similar items in EconPapers)
JEL-codes: D42 L12 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176514003334
Full text for ScienceDirect subscribers only

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:eee:ecolet:v:125:y:2014:i:2:p:153-155

DOI: 10.1016/j.econlet.2014.08.035

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().