A Note on Third-Degree Price Discrimination in Oligopoly

Chi-Chih Lin (), Ci-Ru Huang () and Pei-Te Liu ()
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Chi-Chih Lin: Fo Guang University, Department of Applied Economics, Taiwan
Ci-Ru Huang: Fo Guang University, Department of Applied Economics, Taiwan
Pei-Te Liu: DFo Guang University, Department of Applied Economics, Taiwan

Economic Research Guardian, 2013, vol. 3, issue 2, 146-153

Abstract: In this note, we use a two-stage game to examine the domination of uniform price by third-degree price discrimination in a -firm, two-market model. Not surprisingly, when , a monopoly case results. Accordingly, the price, output, profit, and welfare effects under third-degree price discrimination in an oligopoly with symmetric linear demands and constant marginal costs are the same as the results obtained in monopoly price discrimination.

Keywords: Third-degree price discrimination; Oligopoly; Differentiated product (search for similar items in EconPapers)
JEL-codes: D43 D60 L13 (search for similar items in EconPapers)
Date: 2013
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