IDEAS home Printed from https://ideas.repec.org/a/cai/reidbu/rei_161_0039.html
   My bibliography  Save this article

Nonlinear pricing without market power; what could be learned from the contestable markets approach?

Author

Listed:
  • Eduardo Brou

Abstract

?According to economic theory, the implementation of price discrimination by a firm requires market power. However, observation of reality, confirmed by empirical studies, shows that in extremely competitive industries the practice of price discrimination is verified, especially its second-degree variant. This article explains theoretically the sustainability of second-degree price discrimination in perfectly contestable markets (a generalization of the notion of perfectly competitive markets), thus explaining an empirical phenomenon not authorized by economic theory. Nonlinear pricing systems emerge as mechanisms that, in competitive environments, and without centralization of information, will allow greater social efficiency.?

Suggested Citation

  • Eduardo Brou, 2018. "Nonlinear pricing without market power; what could be learned from the contestable markets approach?," Revue d'économie industrielle, De Boeck Université, vol. 0(1), pages 39-66.
    • Handle: RePEc:cai:reidbu:rei_161_0039
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REI_161_0039
    Download Restriction: free
    File URL: http://www.cairn.info/revue-d-economie-industrielle-2018-1-page-39.htm
    Download Restriction: free
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:reidbu:rei_161_0039. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-d-economie-industrielle.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.