The extant theory on price discrimination in input markets takes the structure of the intermediate industry as …-degree price discrimination on market structure and welfare. We identify situations where banning price discrimination leads to … welfare. Nevertheless, entry can also reduce welfare because it may lead to a severe inefficiency in production. -- Entry …

, and consumer surplus and total welfare higher. On the other hand, a ban on price discrimination leads to the middle …-level wholesale price, lower retail prices, and higher consumer surplus and total welfare. Under asymmetric retail costs, more …