A Simple Model of Entry That Increases Price Levels and Price Dispersion

A monopolist who originally charges a uniform price across all markets may switch to discriminatory pricing upon the entry of a competitor. As a result, intensified competition may lead to more dispersed prices as well as higher prices for some or all consumers.

MoreLess

Year of publication:	2006
Authors:	Wen, Zhou
Published in:	The B.E. Journal of Economic Analysis & Policy. - De Gruyter, ISSN 1935-1682. - Vol. 6.2006, 1, p. 1-14
Publisher:	De Gruyter

More details

Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010639871