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Price Discrimination and Equilibrium in Monopolistic Competition

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  • W. B. MacLeod
  • G. Norman
  • J.F. Thisse

Abstract

Modern theories of monopolistic competition have borrowed extensively from techniques developed in location theory and the theory of spatial pricing. A subject of concern is that there exists no free-entry price-location equilibrium. We demonstrate its existence, provided only that producers are allowed to price discriminate among consumers.

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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 701.

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Length: 32 pages
Date of creation: 1987
Date of revision:
Handle: RePEc:qed:wpaper:701

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