This paper studies the relationship between horizontal product differentiation and the welfare effects of third-degree price discrimination in oligopoly. By deriving linear demand from a representative consumer´s utility and focusing on the symmetric equilibrium of a pricing game, we...

This paper studies the relationship between horizontal product differentiation and the welfare effects of third-degree price discrimination in oligopoly. By deriving linear demand from a representative consumer's utility and focusing on the symmetric equilibrium of a pricing game, we...

Using estimable concepts, this paper provides sufficient conditions for third-degree price discrimination to increase or decrease aggregate output, social welfare, and consumer surplus in differentiated oligopoly when all discriminatory markets are open even in the absence of price...