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Price Discrimination with Producer & Consumer Transaction Costs

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  • Gregory M Randolph

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    (Southern New Hampshire University)

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    Abstract

    This paper examines the impact of transaction costs on the social efficiency of first-degree price discrimination. Price discrimination requires the producer to expend resources and compels consumers to incur costs. The consideration of producer and consumer transaction costs alters the conditions under which first degree price discrimination enhances social welfare.

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P33.pdf
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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 32 (2012)
    Issue (Month): 1 ()
    Pages: 370-375

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    Handle: RePEc:ebl:ecbull:eb-11-00821

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    Related research

    Keywords: Price Discrimination; Social Welfare; Transaction Costs;

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    1. Leeson, Peter T. & Sobel, Russell S., 2008. "Costly price discrimination," Economics Letters, Elsevier, vol. 99(1), pages 206-208, April.
    2. Armstrong, Mark, 2006. "Price discrimination," MPRA Paper 4693, University Library of Munich, Germany.
    3. V. Bhaskar & Ted To, 2004. "Is Perfect Price Discrimination Really Efficient? An Analysis of Free Entry," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 762-776, Winter.
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