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Monopolistic price discrimination and output effect under conditions of constant elasticity demand

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  • Iñaki Aguirre

    ()
    (Universidad del País Vasco)

Abstract

The paper proves that monopolistic price discrimination increases output under conditions of constant demand elasticity. The demonstration is simpler than that of Formby, Layson and Smith (1983)

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File URL: http://www.accessecon.com/pubs/EB/2006/Volume4/EB-06D40012A.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 4 (2006)
Issue (Month): 23 ()
Pages: 1-6

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Handle: RePEc:ebl:ecbull:eb-06d40012

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  1. Greenhut, M L & Ohta, H, 1976. "Joan Robinson's Criterion for Deciding Whether Market Discriminntion Reduces Output," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 86(341), pages 96-97, March.
  2. Schmalensee, Richard., 1980. "Output and welfare implications of monopolistic third-degree price discrimination," Working papers, Massachusetts Institute of Technology (MIT), Sloan School of Management 1095-80., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  3. Francisco Galera & Jesús M. Zaratiegui, 2003. "Welfare and Output in Third-Degree Price Discrimination: a Note," Faculty Working Papers, School of Economics and Business Administration, University of Navarra 07/03, School of Economics and Business Administration, University of Navarra.
  4. Formby, John P & Layson, Stephen K & Smith, W James, 1983. "Price Discrimination, 'Adjusted Concavity,' and Output Changes under Conditions of Constant Elasticity," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 93(372), pages 892-99, December.
  5. Varian, Hal R, 1985. "Price Discrimination and Social Welfare," American Economic Review, American Economic Association, American Economic Association, vol. 75(4), pages 870-75, September.
  6. Schwartz, Marius, 1990. "Third-Degree Price Discrimination and Output: Generalizing a Welfare Result," American Economic Review, American Economic Association, American Economic Association, vol. 80(5), pages 1259-62, December.
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Cited by:
  1. I�aki Aguirre & Simon Cowan & John Vickers, 2010. "Monopoly Price Discrimination and Demand Curvature," American Economic Review, American Economic Association, American Economic Association, vol. 100(4), pages 1601-15, September.
  2. Aguirre Pérez, Iñaki & Cowan, Simon George, 2013. "Monopoly price discrimination with constant elasticity demand," IKERLANAK, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I Ikerlanak;2013-74, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  3. Yeung-Nan Shieh, 2006. "Monopsonistic wage discrimination and employment effect under conditions of constant labor supply elasticity," Economics Bulletin, AccessEcon, vol. 4(32), pages 1-4.
  4. Iñaki Aguirre, 2008. "Output and misallocation effects in monopolistic third-degree price discrimination," Economics Bulletin, AccessEcon, vol. 4(11), pages 1-11.
  5. Simon GB Cowan, 2013. "Welfare-increasing third-degree price discrimination," Economics Series Working Papers, University of Oxford, Department of Economics 652, University of Oxford, Department of Economics.
  6. John Vickers & Simon Cowan, 2007. "Output and Welfare Effects in the Classic Monopoly Price Discrimination Problem," Economics Series Working Papers, University of Oxford, Department of Economics 355, University of Oxford, Department of Economics.
  7. Jean-Christophe Poudou & Michel Roland, 2013. "Efficiency of Uniform Pricing in Universal Service Obligation," Working Papers, LAMETA, Universtiy of Montpellier 13-13, LAMETA, Universtiy of Montpellier, revised Nov 2013.
  8. Paolo Bertoletti, 2009. "On the output criterion for price discrimination," Economics Bulletin, AccessEcon, vol. 29(4), pages 2951-2956.
  9. Aguirre Pérez, Iñaki, 2009. "Joan Robinson Was Almost Right: Output under Third-Degree Price Discrimination," IKERLANAK, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I 2009-38, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.

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