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Wholesale price discrimination and enforcement of regulation

Author

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  • Hiroshi Aiura

    () (Faculty of Economics, Oita University)

Abstract

The present paper studied third-degree price discrimination in wholesale markets and its welfare property when a monopolistic manufacturer sells his/her products to two retailers who have different qualities and costs of sales. Our results revealed that price discrimination within a certain extent increases social welfare under some conditions, which would support the soft enforcement of prohibiting price discrimination by a monopolistic wholesaler.

Suggested Citation

  • Hiroshi Aiura, 2010. "Wholesale price discrimination and enforcement of regulation," Economics Bulletin, AccessEcon, vol. 30(3), pages 2083-2091.
  • Handle: RePEc:ebl:ecbull:eb-10-00218
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I3-P191.pdf
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    References listed on IDEAS

    as
    1. Van Huyck, John B. & Cook, Joseph P. & Battalio, Raymond C., 1997. "Adaptive behavior and coordination failure," Journal of Economic Behavior & Organization, Elsevier, vol. 32(4), pages 483-503, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Third-degree price discrimination; Price competition with vertical differentiation; Upstream-Downstream relationships;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • K2 - Law and Economics - - Regulation and Business Law

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