Pass-Through as an Economic Tool: On Exogenous Competition, Social Incidence, and Price Discrimination

Jeanine Miklós-Thal and Greg Shaffer

Journal of Political Economy, 2021, vol. 129, issue 1, 323 - 335

Abstract: Weyl and Fabinger (2013) analyze the social incidence of competition and the output and welfare effects of third-degree price discrimination by considering the hypothetical entrance of exogenous quantity into a market. The formulas they use for this purpose, however, are correct only for marginal changes in exogenous quantity starting at zero or if demand functions are linear. We show how using the correct formulas changes Weyl and Fabinger’s analyses and leads to new results on the social incidence of competition and on the output and welfare effects of third-degree price discrimination in monopoly and oligopoly markets.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://dx.doi.org/10.1086/711348 (application/pdf)
http://dx.doi.org/10.1086/711348 (text/html)
Access to the online full text or PDF requires a subscription.

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:ucp:jpolec:doi:10.1086/711348

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().