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On the Welfare Effects of Regulating Price Discrimination

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  • Ireland, Norman J
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    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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    Bibliographic Info

    Article provided by Wiley Blackwell 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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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

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    Cited by:
    1. Sofia Berto Villas-Boas, 2009. "An empirical investigation of the welfare effects of banning wholesale price discrimination," RAND Journal of Economics, RAND Corporation, vol. 40(1), pages 20-46.
    2. Alberto Iozzi & Roberta Sestini & Edilio Valentini, 2005. "Pricing Discretion and Price Regulation in Competitive Industries," CEIS Research Paper 69, Tor Vergata University, CEIS.
    3. Karp, Larry & Perloff, Jeffrey, 2011. "The iPhone Goes Downstream: Mandatory Universal Distribution∗," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7vc007jh, Department of Agricultural & Resource Economics, UC Berkeley.

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