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PRICE DISCRIMINATION IN STACKELBERG COMPETITION -super-

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  • LEVENT KUTLU

Abstract

We examine the effects of price discrimination in the Stackelberg competition model for the linear demand case. We show that the leader does not use any price discrimination at all. Rather, the follower does all price discrimination. The leader directs all of its first mover preemptive advantage to attract the highest value consumers who pay a uniformly high price. We observe that profits and total welfare are larger and consumer surplus is smaller than those of the standard Stackelberg competition model. Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics.

Suggested Citation

  • Levent Kutlu, 2009. "PRICE DISCRIMINATION IN STACKELBERG COMPETITION -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 57(2), pages 364-364, June.
  • Handle: RePEc:bla:jindec:v:57:y:2009:i:2:p:364-364
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    Cited by:

    1. repec:spr:empeco:v:53:y:2017:i:1:d:10.1007_s00181-017-1251-4 is not listed on IDEAS
    2. Arijit Mukherjee, 2010. "Price discrimination in oligopoly with asymmetric firms," Economics Bulletin, AccessEcon, vol. 30(4), pages 2668-2670.
    3. Rajnish Kumar & Levent Kutlu, 2016. "Price Discrimination in Quantity Setting Oligopoly," Manchester School, University of Manchester, vol. 84(4), pages 482-505, July.
    4. repec:bla:scotjp:v:64:y:2017:i:5:p:530-536 is not listed on IDEAS
    5. Hazledine, Tim, 2010. "Oligopoly price discrimination with many prices," Economics Letters, Elsevier, vol. 109(3), pages 150-153, December.
    6. Kutlu, Levent, 2012. "Price discrimination in Cournot competition," Economics Letters, Elsevier, vol. 117(3), pages 540-543.
    7. Levent Kutlu, 2015. "Limited Memory Consumers and Price Dispersion," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 46(4), pages 349-357, June.
    8. Bakó, Barna & Kálecz-Simon, András, 2012. "Price discrimination in asymmetric Cournot oligopoly," Economics Letters, Elsevier, vol. 116(3), pages 301-303.
    9. repec:eee:jaitra:v:64:y:2017:i:pa:p:55-59 is not listed on IDEAS

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