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Third-Degree Price Discrimination and Output: Generalizing a Welfare Result

Marius Schwartz
- 01 Jan 2016 - 
- Vol. 80, Iss: 5, pp 1259-1262
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This article is published in The American Economic Review.The article was published on 2016-01-01 and is currently open access. It has received 179 citations till now. The article focuses on the topics: Price discrimination.

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Should we opt for the Black Friday discounted price or wait until the Boxing Day

Jiang Wu, +1 more
- 18 Dec 2016 - 
TL;DR: In this article, the authors derive an optimal strategy for minimizing the expected loss in the two-period economy when a pivotal decision needs to be made during the first time period and cannot be subsequently reversed.
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Collective Consuming: Consumers as Subcontractors on Electronic Markets

TL;DR: In this article, the authors argue that consumers will become dependent subcontractors on electronic markets and that virtual communities of consumers that organize countervailing power will not mitigate the tendency of consumers becoming dependent on producers or e-tailers.
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Oligopoly price discrimination, competitive pressure and total output

TL;DR: In this article, the authors extended the traditional analysis of the output effect under monopoly (third-degree) price discrimination to a multimarket oligopoly and showed that differences in competitive pressure, measured by the number of firms, across markets are more important than the relative demand curvature when determining the effect on total output.
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The Welfare Effects of Third‐Degree Price Discrimination in a Differentiated Oligopoly

TL;DR: In this article, the authors study the relationship between horizontal product differentiation and the welfare effects of third-degree price discrimination in oligopoly and show that price discrimination can improve social welfare if firms' brands are substitutes in a market where the discriminatory price is higher and complements in one where it is lower.
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Timing of investments and third degree price discrimination in intermediate good markets

TL;DR: In this paper, the authors study third degree price discrimination in intermediate good markets, in which costs of production for the downstream firms are determined by their investment choices, and they focus on the effect of the sequence of firm actions and analyze two models with different timing of investments, before or after the upstream monopolist sets the input prices.
References
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Book

The Economics of Welfare

TL;DR: Aslanbeigui et al. as mentioned in this paper discussed the relationship between the national dividend and economic and total welfare, and the size of the dividend to the allocation of resources in the economy and the institutional structure governing labor market operations.
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Price Discrimination and Social Welfare

TL;DR: In this article, the effect of price discrimination on social welfare using methods from duality theory was studied using Ebsco's reservation model, and upper and lower bounds on welfare change with optimal price discrimination.
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Output and welfare implications of monopolistic third-degree price discrimination

TL;DR: In this article, the authors focus on the output and welfare implications of monopolistic third-degree price discrimination, and propose a solution to maximize profits by charging different prices to different markets or classes for customers; Maldistribution of resources for different uses.