Monopolistic third-degree price discrimination under vertical product differentiation

This paper shows in a vertical product differentiation model with variable costs of quality that monopolistic third-degree price discrimination always reduces welfare regardless of whether the quality is fixed or is endogenous. The results provide rich implications for antitrust policy.

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Year of publication:	2014
Authors:	Nguyen, Xuan
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 125.2014, 2, p. 153-155
Publisher:	Elsevier
Subject:	Endogenous quality \| Monopoly \| Third-degree price discrimination \| Vertical product differentiation \| Welfare

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Type of publication:	Article
Classification:	D42 - Monopoly ; L12 - Monopoly; Monopolization Strategies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011076548