Market Interdependence and Third-Degree Price Discrimination: Comment

Richard Cebula ()

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this theoretical note is to develop a model of third-degree price discrimination in which the quantities sold in each market are interdependent. We demonstrate in our mathematical model that in this situation the price differential may be explained not only in terms of price elasticity differentials, as is typically shown to be the case, but also in terms of the market interdependency, which is generally overlooked.

Keywords: third-degree price discrimination; market interdependence; price differentials (search for similar items in EconPapers)
JEL-codes: D11 D42 D49 D99 (search for similar items in EconPapers)
Date: 1979-09-15
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Citations: View citations in EconPapers (1)

Published in The Quaterly Review of Economics and Business 2.20(1980): pp. 106-109

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