Price Discrimination with Producer & Consumer Transaction Costs
AbstractThis 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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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 1 ()
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Price Discrimination; Social Welfare; Transaction Costs;
Find related papers by JEL classification:
- D4 - Microeconomics - - Market Structure and Pricing
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Armstrong, Mark, 2006.
4693, University Library of Munich, Germany.
- Armstrong, M, 2008. "Price Discrimination," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Leeson, Peter T. & Sobel, Russell S., 2008. "Costly price discrimination," Economics Letters, Elsevier, vol. 99(1), pages 206-208, April.
- 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.
- V. Bhaskar & Ted To, 2002. "Is Perfect Price Discrimination Really Efficient? An Analysis of Free Entry," Economics Discussion Papers 537, University of Essex, Department of Economics.
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