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Price Discrimination and Equilibrium in Monopolistic Competition

Author

Listed:
  • W. B. MacLeod
  • G. Norman
  • J.F. Thisse

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.

Suggested Citation

  • W. B. MacLeod & G. Norman & J.F. Thisse, 1987. "Price Discrimination and Equilibrium in Monopolistic Competition," Working Paper 701, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:701
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    References listed on IDEAS

    as
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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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