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On the Welfare Effects of Regulating Price Discrimination

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Author Info
Ireland, Norman J
Abstract

In a model with linear demands and constant variable costs, it is shown that a welfare gain is made by restricting the relative rather than absolute prices that a monopolist can charge for a range of products. The nature of this class of restrictions is considered. One application might occur if cost levels are unknown to the regulatory authority but costs are known to be linear functions of product characteristics. Copyright 1992 by Blackwell Publishing Ltd.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 40 (1992)
Issue (Month): 3 (September)
Pages: 237-48
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Handle: RePEc:bla:jindec:v:40:y:1992:i:3:p:237-48

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  1. Alberto Iozzi & Roberta Sestini & Edilio Valentini, 2005. "Pricing Discretion and Price Regulation in Competitive Industries," CEIS Research Paper 69, Tor Vergata University, CEIS. [Downloadable!]
    Other versions:
  2. Sofia Villas-Boas, 2008. "An Empirical Investigation of the Welfare Effects of Banning Wholesale Price Discrimination," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 1017, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
    Other versions:
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This page was last updated on 2009-12-19.

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