Spatial Price Discrimination with Heterogeneous Products

Simon Anderson and André de Palma ()

The Review of Economic Studies, 1988, vol. 55, issue 4, 573-592

Abstract: Product heterogeneity is introduced into the context of spatial price discrimination. Many of the strong properties of the standard homogeneous goods case (which are attained as a limit case here) are shown to be no longer valid. In particular, the social optimum is no longer sustainable as a market equilibrium unless products are either identical or else very different.

Date: 1988
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