Author: Aguirre Iñaki Cowan Simon Vickers John
Publisher: American Economic Association
ISSN: 0002-8282
Source: The American Economic Review, Vol.100, Iss.4, 2010-09, pp. : 1601-1615
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Abstract
This paper presents a general analysis of the effects of monopolistic thirddegree price discrimination on welfare and output when all markets are served. Sufficient conditions—involving straightforward comparisons of the curvatures of the direct and inverse demand functions in the different markets—are presented for discrimination to have negative or positive effects on social welfare and output.
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