Bergemann, Dirk; Brooks, Benjamin; Morris, Stephen - Cowles Foundation for Research in Economics, Yale University - 2013
.e., carry out "third degree price discrimination." We show that the segmentation and pricing induced by the additional …) producer surplus is at least as high as profits under the uniform monopoly price, and (iii) total surplus does not exceed the … efficient gains from trade. As well as characterizing the welfare impact of price discrimination, we examine the limits of how …