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On the Welfare Effects of Regulating Price Discrimination

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  • Ireland, Norman J

Abstract

In a model with linear demands and constant variable costs, it is shown that a welfare gain is made by restricting the relative rather than absolute prices that a monopolist can charge for a range of products. The nature of this class of restrictions is considered. One application might occur if cost levels are unknown to the regulatory authority but costs are known to be linear functions of product characteristics. Copyright 1992 by Blackwell Publishing Ltd.

Suggested Citation

  • Ireland, Norman J, 1992. "On the Welfare Effects of Regulating Price Discrimination," Journal of Industrial Economics, Wiley Blackwell, vol. 40(3), pages 237-248, September.
  • Handle: RePEc:bla:jindec:v:40:y:1992:i:3:p:237-48
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    Cited by:

    1. Karp, Larry S. & Perloff, Jeffrey M., 2011. "The iPhone goes downstream: mandatory universal distribution," CUDARE Working Papers 123636, University of California, Berkeley, Department of Agricultural and Resource Economics.
    2. Alberto Iozzi & Roberta Sestini & Edilio Valentini, 2006. "Pricing Discretion and Price Regulation in Competitive Industries," Journal of Regulatory Economics, Springer, vol. 29(2), pages 151-165, March.
    3. Richards, Timothy J. & Liaukonyte, Jura & Streletskaya, Nadia A., 2016. "Personalized pricing and price fairness," International Journal of Industrial Organization, Elsevier, vol. 44(C), pages 138-153.
    4. Karp, Larry & Perloff, Jeffrey, 2011. "The iPhone Goes Downstream: Mandatory Universal Distribution∗," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7vc007jh, Department of Agricultural & Resource Economics, UC Berkeley.
    5. Sofia Berto Villas-Boas, 2009. "An empirical investigation of the welfare effects of banning wholesale price discrimination," RAND Journal of Economics, RAND Corporation, vol. 40(1), pages 20-46.
    6. Braouezec, Yann, 2016. "On the welfare effects of regulating the number of discriminatory prices," Research in Economics, Elsevier, vol. 70(4), pages 588-607.

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