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Oligopoly price discrimination, competitive pressure and total output

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  • Aguirre, Iñaki

Abstract

This paper extends the traditional analysis of the output effect under monopoly (third- degree) price discrimination to a multimarket oligopoly. The author shows that under oligopoly price discrimination, differences in competitive pressure, measured by the number of firms, across markets are more important than the relative demand curvature when determining the effect on total output.

Suggested Citation

  • Aguirre, Iñaki, 2019. "Oligopoly price discrimination, competitive pressure and total output," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-16.
    • Handle: RePEc:zbw:ifweej:201952
    DOI: 10.5018/economics-ejournal.ja.2019-52
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    References listed on IDEAS

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    Cited by:

    1. Jeanine Miklós‐Thal & Greg Shaffer, 2021. "Input price discrimination by resale market," RAND Journal of Economics, RAND Corporation, vol. 52(4), pages 727-757, December.
    2. Miklós-Thal, Jeanine & Shaffer, Greg, 2021. "Third-degree price discrimination in oligopoly with endogenous input costs," International Journal of Industrial Organization, Elsevier, vol. 79(C).
    3. Takanori Adachi & Michal Fabinger, 2019. "Output and Welfare Implications of Oligopolistic Third-Degree Price Discrimination," Working Papers e139, Tokyo Center for Economic Research.
    4. Zheng Zhang & Yingtong Wang & Qingchun Meng & Qiang Han, 2022. "Impact of Third-Degree Price Discrimination on Welfare under the Asymmetric Price Game," Mathematics, MDPI, vol. 10(8), pages 1-16, April.

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    More about this item

    Keywords

    third-degree price discrimination; total output; oligopoly; welfare;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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