Price discrimination and equilibrium in monopolistic competition
Modern theories of monopolistic competition have borrowed extensively from techniques developed in location theory and the theory of spatial pricing. A subject of concern is that there exists no free-entry price-location equilibrium. We demonstrate its existence, provided only that producers are allowed to price discriminate among consumers.
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|Note:||In : Market Strategy and Structure, edited by J.M. Alec Gee and George Norman, New York, Harvester, 184-200, 1992|
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