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In this paper, we show that in order for third-degree price discrimination to increase total output, the demands of the … necessary conditions and sufficient conditions for third-degree price discrimination to increase total output. …
Persistent link: https://www.econbiz.de/10008556785
This paper presents simple conditions for monopoly third-degree price discrimination to have negative or positive …
Persistent link: https://www.econbiz.de/10008471792
Published as an article in: American Economic Review, 2010, vol. 100, issue 4, pages 1601-15.
Persistent link: https://www.econbiz.de/10008556783
Persistent link: https://www.econbiz.de/10011266134
Motivated by the failure of competition to emerge after the natural gas market in the Czech Republic was liberalized, I explore the impact of natural gas storage ownership and upstream competition on the downstream level. I extend standard Cournot models to understand current and likely future...
Persistent link: https://www.econbiz.de/10005086605
monopoly because each duopolist has a smaller market size than the monopolist. But social welfare in the monopoly is lower than …
Persistent link: https://www.econbiz.de/10010541719
all platforms or a “pure” monopoly with just one platform. Literature has not generally discussed, which benchmark is the …
Persistent link: https://www.econbiz.de/10009372469
The welfare effects of third-degree price discrimination are known to be negative when demand functions are linear, marginal cost is constant and all markets are served. This paper shows that discrimination lowers welfare for a more general class of demand functions. Demand varies across markets...
Persistent link: https://www.econbiz.de/10010604921
welfare. Our results reinforce the traditional wisdom that an increase in output is a necessary condition for price … discrimination to improve social welfare. But we also find that the positive output effect does not need to be as large as previously … supposed since, under some conditions, the monopoly will move to a socially preferred technology only if third-degree price …
Persistent link: https://www.econbiz.de/10010612051
capacities can be larger or smaller with a duopoly than with a monopoly. If the two firms co-ordinate on a pareto dominant …
Persistent link: https://www.econbiz.de/10005772941