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Price discrimination and equilibrium in monopolistic competition

Author

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  • McLEOD, W.B.
  • NORMAN, G.
  • THISSE, J.-F.

Abstract

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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(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
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Suggested Citation

  • McLEOD, W.B. & NORMAN, G. & THISSE, J.-F., 1988. "Price discrimination and equilibrium in monopolistic competition," LIDAM Reprints CORE 828, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:828
    DOI: 10.1016/S0167-7187(88)80002-X
    Note: In : International Journal of Industrial Organization, 6, 429-446, 1988
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    References listed on IDEAS

    as
    1. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 217-235.
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    3. Eaton, B Curtis & Lipsey, Richard G, 1978. "Freedom of Entry and the Existence of Pure Profit," Economic Journal, Royal Economic Society, vol. 88(351), pages 455-469, September.
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    6. B. Curtis Eaton & Richard G. Lipsey, 1979. "A Comment on Location and Industrial Efficiency with Free Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(3), pages 447-450.
    7. Robert F. Love & James G. Morris, 1979. "Mathematical Models of Road Travel Distances," Management Science, INFORMS, vol. 25(2), pages 130-139, February.
    8. JASKOLD GABSZEWICZ, Jean & THISSE, Jacques-François, 1986. "Spatial competition and the location of firms," LIDAM Reprints CORE 713, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Joseph E. Stiglitz & G. Frank Mathewson (ed.), 1986. "New Developments in the Analysis of Market Structure," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262690934, December.
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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables

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