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 … firms receive personalized prices whereas efficient firms arecharged a uniform price. The extreme cases of complete price … discriminationand uniform price arise in our setting as particular cases, depending on the costof customizing prices. …