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Third-Degree Price Discrimination and Output: Generalizing a Welfare Result
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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.read more
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The welfare effects of third-degree price discrimination in intermediate good markets: the case of bargaining
TL;DR: In this paper, the welfare effects of third-degree price discrimination by a monopolist selling to downstream firms with bargaining power are examined, where one of the downstream firms (the chain store) can integrate backward at lower cost than rivals.
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Bounding the welfare effects of third-degree price discrimination
TL;DR: In this paper, the authors show that if the demand function in the weak market is concave, then the monopolist's profit under uniform pricing must be at least twice as large as the profit in the strong market under discrimination.
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Third-Degree Price Discrimination With Interdependent Demands
TL;DR: In this article, the authors analyzed the price, output, and welfare effects of third-degree price discrimination for a monopolist who sells in two interdependent markets and showed that the economic effects of price discrimination depend on the type and strength of demand interdependence, the curvature of the demands and the slope of marginal cost.
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International Pricing with Costly Consumer Arbitrage
TL;DR: The authors showed that if arbitrage costs differ across consumers, a monopolist may sell in a second country even if there is no local demand in the first country and use the second country to discriminate across consumers.
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Welfare and Output in Third-Degree Price Discrimination: a Note
TL;DR: In this article, the main result on the welfare effects of third-degree price discrimination by a monopolist is that an increase in total output is a necessary condition for welfare improvement.
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.