Monopoly Output and Welfare Effects of Third-degree Price Discrimination PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Monopoly Output and Welfare Effects of Third-degree Price Discrimination PDF full book. Access full book title Monopoly Output and Welfare Effects of Third-degree Price Discrimination by Song-Ken Hsu. Download full books in PDF and EPUB format.
Author: Song-Ken Hsu
Publisher:
ISBN:
Category : Economic policy
Languages : en
Pages : 26
Get Book Here
Book Description
Author: Song-Ken Hsu
Publisher:
ISBN:
Category : Economic policy
Languages : en
Pages : 26
Get Book Here
Book Description
Author: Takanori Adachi
Publisher: Springer Nature
ISBN: 981993205X
Category : Business & Economics
Languages : en
Pages : 85
Get Book Here
Book Description
This book provides an updated overview of the recent progress in the theoretical study of third-degree price discrimination. It is a marketing tactic and is said to be present if the unit price is different across different groups of buyers. Its welfare evaluation is often difficult because it entails two countervailing effects: on one hand, it exploits surplus from consumers who have high willingness-to-pay, but on the other hand, it generates gains from trade from consumers who otherwise would not purchase the good. Recognizing this difficulty, we provide new insights on evaluation of third-degree price discrimination in consideration of network effects and vertical product differentiation. Our analysis is particularly useful for the industries related to information and communication technologies (ICT) because these two elements characterize them. Furthermore, we also study the welfare effects of third-degree price discrimination under imperfect competition other than monopoly. At first, it seems that it may complicate the analysis under monopoly. However, we argue that the main thrusts of analysis under monopoly carry over to the case of oligopoly. We also take into account behavioral aspects and their implications for studying third-degree price discrimination. Overall, this book is designed to provide implications for contemporary management and policy issues by advancing theoretical issues in industrial organization.
Author: Richard Schmalensee
Publisher:
ISBN:
Category : Price discrimination
Languages : en
Pages : 14
Get Book Here
Book Description
Author: Simon Cowan
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Krishnendu Ghosh Dastidar
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
In this paper we analyse the effects of third-degree price discrimination on output, profit and welfare in a symmetric cost duopoly. We provide sufficient conditions for output, profit and welfare to be higher (or lower) under third-degree price discrimination in a duopoly, compared with a uniform price regime. Comparing our findings with the traditional results on monopoly price discrimination, we show that the output and profit effects under duopoly price discrimination are very different from those under the monopoly case. However, the welfare effects are very similar.
Author: Manuel Salas-Velasco
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
This paper uses both a geometrical and mathematical analysis to explain monopolistic third-degree price discrimination, and it also shows how price discrimination affects society. A frequent policy question in the price discrimination literature is whether to allow third-degree price discrimination or to enforce uniform pricing. A key feature to understanding this issue in the context of imperfectly competitive markets is the impact of price discrimination on output. The article shows that a monopoly facing downward sloping linear demands, and constant marginal costs, will obtain higher profits under price discrimination than under a single-price strategy, but price discrimination lowers welfare if total output does not change. When price discrimination causes total output to increase, then this practice will have a beneficial effect on overall welfare.
Author: Joan Robinson
Publisher: Springer
ISBN: 1349153206
Category : Business & Economics
Languages : en
Pages : 359
Get Book Here
Book Description
Author: Takanori Adachi
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
This article examines the welfare effects of third-degree price discrimination under oligopolistic competition with horizontal product differentiation. We derive a necessary and sufficient condition for price discrimination to improve social welfare: the degree of substitution must be sufficiently greater in the “strong” market (where the discriminatory price is higher than the uniform price) than in the “weak” market (where it is lower). It is verified, however, that consumer surplus is never improved; social welfare improves solely owing to an increase in the firms' profits in the case of linear demands.
Author: Youngsun Kwon
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
This paper solves a simple model of third-degree price discrimination assuming two independent linear demands and discusses the effects of price discrimination on monopoly profit, consumer surplus, and social welfare. In addition, using a simple model, this paper shows that the probability that price discrimination raises social welfare increases as the preferences or incomes of consumer groups become more heterogeneous. The virtual aggregated demand curve of the price-discriminating monopoly, corresponding to its aggregated marginal revenue curve, is derived. The curve is non-linear and lies above the aggregated demand curve of simple monopoly. The results of this paper may be used to explain to students the effects of third-degree price discrimination on market outcomes.
Author: Daniel P. O'Brien
Publisher:
ISBN:
Category : Negotiation
Languages : en
Pages : 0
Get Book Here
Book Description
