Market Interdependence and Third-Degree Price Discrimination: Comment

The purpose of this theoretical note is to develop a model of third-degree price discrimination in which the quantities sold in each market are interdependent. We demonstrate in our mathematical model that in this situation the price differential may be explained not only in terms of price elasticity differentials, as is typically shown to be the case, but also in terms of the market interdependency, which is generally overlooked.

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Year of publication:	1979-09-15
Authors:	Cebula, Richard
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	third-degree price discrimination \| market interdependence \| price differentials

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Notes:	Published in The Quaterly Review of Economics and Business 2.20(1980): pp. 106-109
Classification:	D11 - Consumer Economics: Theory ; D42 - Monopoly ; D49 - Market Structure and Pricing. Other ; D99 - Intertemporal Choice and Growth. Other
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011108689