A Simple Model of Entry That Increases Price Levels and Price Dispersion
Abstract A monopolist who originally charges a uniform price across all markets may switch to discriminatory pricing upon the entry of a competitor. As a result, intensified competition may lead to more dispersed prices as well as higher prices for some or all consumers.
Year of publication: |
2006
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Authors: | Zhou, Wen |
Published in: |
Advances in Economic Analysis & Policy. - De Gruyter, ISSN 1538-0637, ZDB-ID 2071753-2. - Vol. 6.2006, 1
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Publisher: |
De Gruyter |
Subject: | entry | price competition | price discrimination | price dispersion |
Saved in:
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