Monopoly price discrimination with constant elasticity demand

Iñaki Aguirre and Simon Cowan

Economic Theory Bulletin, 2015, vol. 3, issue 2, No 17, 329-340

Abstract: Abstract This paper presents new results on the welfare effects of third-degree price discrimination under constant elasticity demand. We show that when both the share of the strong market under uniform pricing and the elasticity difference between markets are high enough, then price discrimination not only can increase social welfare but also consumer surplus. We also obtain new bounds on the welfare change for log-convex demands.

Keywords: Monopoly price discrimination; Social welfare; Constant elasticity demand (search for similar items in EconPapers)
JEL-codes: D42 L12 L13 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://link.springer.com/10.1007/s40505-014-0063-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:etbull:v:3:y:2015:i:2:d:10.1007_s40505-014-0063-3

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40505

DOI: 10.1007/s40505-014-0063-3

Access Statistics for this article

Economic Theory Bulletin is currently edited by Nicholas C. Yannelis

More articles in Economic Theory Bulletin from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().