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Direct Price Discrimination in the Hotelling Model: Competition and Collusion

Author

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  • Stefano Colombo

    (Università Cattolica del Sacro Cuore, Milano)

Abstract

This paper reviews the main contributions of the literature regarding the effects of direct price discrimination within the Hotelling model. Moreover, we introduce an asymmetric Hotelling model and we show that the assumption of spatial asymmetry between firms is likely to alter the implications of price discrimination.

Suggested Citation

  • Stefano Colombo, 2011. "Direct Price Discrimination in the Hotelling Model: Competition and Collusion," Rivista di Politica Economica, SIPI Spa, issue 3, pages 319-334, JULY-SEPT.
    • Handle: RePEc:rpo:ripoec:y:2011:i:3:p:319-334
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    More about this item

    Keywords

    price discrimination; hotelling model; competition; collusion.;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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