Seasonality, price discrimination, and welfare

Francisco Galera (), Pedro Mendi and Juan Carlos Molero
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Francisco Galera: Universidad de Navarra

Journal of Economics, 2017, vol. 120, issue 3, No 4, 269-277

Abstract: Abstract We discuss a potential limitation to a widely accepted result, namely that an output increase is a necessary condition for welfare to increase with price discrimination. We use a theoretical model to show that the existence of seasonal demand fluctuations may allow for a simultaneous reduction in average output and increase in average welfare. We also discuss a number of extensions of our basic model.

Keywords: Price discrimination; Welfare; Demand fluctuations (search for similar items in EconPapers)
JEL-codes: D42 D61 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:120:y:2017:i:3:d:10.1007_s00712-016-0508-2

DOI: 10.1007/s00712-016-0508-2

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