Welfare and Output in Third-Degree Price Discrimination: a Note

Francisco Galera () and Jesús Zaratiegui ()
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Francisco Galera: School of Economics and Business Administration, University of Navarra

No 07/03, Faculty Working Papers from School of Economics and Business Administration, University of Navarra

Abstract: In this note I provide examples to show that, contrary to what is widely believed, when changing from an uniform price to a third-degree price discrimination situation, an improvement in welfare is possible with output reduction, if there is more than one firm.

Keywords: price discrimination; imperfect competition; welfare (search for similar items in EconPapers)
JEL-codes: D43 D60 L13 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2003-05-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published, International Journal of Industrial Organization, 2006, vol. 24(3): pp. 605-611

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Journal Article: Welfare and output in third-degree price discrimination: A note (2006)
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