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A Note on Third-Degree Price Discrimination in Oligopoly

Author

Listed:
  • Chi-Chih Lin

    (Fo Guang University, Department of Applied Economics, Taiwan)

  • Ci-Ru Huang

    (Fo Guang University, Department of Applied Economics, Taiwan)

  • Pei-Te Liu

    (DFo Guang University, Department of Applied Economics, Taiwan)

Abstract

In this note, we use a two-stage game to examine the domination of uniform price by third-degree price discrimination in a -firm, two-market model. Not surprisingly, when , a monopoly case results. Accordingly, the price, output, profit, and welfare effects under third-degree price discrimination in an oligopoly with symmetric linear demands and constant marginal costs are the same as the results obtained in monopoly price discrimination.

Suggested Citation

  • Chi-Chih Lin & Ci-Ru Huang & Pei-Te Liu, 2013. "A Note on Third-Degree Price Discrimination in Oligopoly," Economic Research Guardian, Weissberg Publishing, vol. 3(2), pages 146-153, December.
    • Handle: RePEc:wei:journl:v:3:y:2013:i:2:p:146-153
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    More about this item

    Keywords

    Third-degree price discrimination; Oligopoly; Differentiated product;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D60 - Microeconomics - - Welfare Economics - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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