Faulí-Oller, Ramón; Bru, Lluís; Sandonís, Joel - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2006
We analyze third degree price discrimination by an upstream monopolistto a continuum of heterogeneous downstream firms. The novelty of ourapproach is to recognize that customizing prices may be costly, whichintroduces an interesting trade-off. As a consequence, partial pricediscrimination arises...