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Wholesale price discrimination and enforcement of regulation


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  • Hiroshi Aiura

    (Faculty of Economics, Oita University)

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    The present paper studied third-degree price discrimination in wholesale markets and its welfare property when a monopolistic manufacturer sells his/her products to two retailers who have different qualities and costs of sales. Our results revealed that price discrimination within a certain extent increases social welfare under some conditions, which would support the soft enforcement of prohibiting price discrimination by a monopolistic wholesaler.

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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 30 (2010)
    Issue (Month): 3 ()
    Pages: 2083-2091

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    Handle: RePEc:ebl:ecbull:eb-10-00218

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    Related research

    Keywords: Third-degree price discrimination; Price competition with vertical differentiation; Upstream-Downstream relationships;

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