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On Third-Degree Price Discrimination In Oligopoly

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  • KRISHNENDU GHOSH DASTIDAR

Abstract

In this paper we analyse the effects of third-degree price discrimination on output, profit and welfare in a symmetric cost duopoly. We provide sufficient conditions for output, profit and welfare to be higher (or lower) under third-degree price discrimination in a duopoly, compared with a uniform price regime. Comparing our findings with the traditional results on monopoly price discrimination, we show that the output and profit effects under duopoly price discrimination are very different from those under the monopoly case. However, the welfare effects are very similar. Copyright Blackwell Publishing Ltd and The University of Manchester, 2006.

Suggested Citation

  • Krishnendu Ghosh Dastidar, 2006. "On Third-Degree Price Discrimination In Oligopoly," Manchester School, University of Manchester, vol. 74(2), pages 231-249, March.
  • Handle: RePEc:bla:manchs:v:74:y:2006:i:2:p:231-249
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9957.2006.00490.x
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    Cited by:

    1. Takanori Adachi & Noriaki Matsushima, 2014. "The Welfare Effects Of Third-Degree Price Discrimination In A Differentiated Oligopoly," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 1231-1244, July.
    2. Aguirre Iñaki, 2016. "On the Economics of the “Meeting Competition Defense” Under the Robinson–Patman Act," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(3), pages 1213-1238, September.
    3. repec:bla:ecinqu:v:55:y:2017:i:1:p:339-351 is not listed on IDEAS
    4. Aguirre Pérez, Iñaki, 2011. "Multimarket Competition and Welfare Effects of Price discrimination," IKERLANAK 2011-55, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    5. Francisco Galera & Pedro Mendi & Juan Carlos Molero, 2017. "Quality Differences, Third-Degree Price Discrimination, And Welfare," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 339-351, January.

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