Monopoly price discrimination with constant elasticity demand

This paper presents new results on the welfare e¤ects of third-degree price discrimination under constant elasticity demand. We show that when both the share of the strong market under uniform pricing and the elasticity di¤erence between markets are high enough,then price discrimination not only can increase social welfare but also consumer surplus.

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Year of publication:	2013-11
Authors:	Aguirre Pérez, Iñaki ; Cowan, Simon George
Institutions:	Departamento de Fundamentos del Análisis Económico I, Facultad de Ciencias Económicas y Empresariales

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Extent:	application/pdf
Series:	IKERLANAK.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Ikerlanak;2013.74 Number Ikerlanak;2013-74
Classification:	L12 - Monopoly; Monopolization Strategies ; L13 - Oligopoly and Other Imperfect Markets ; D42 - Monopoly
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011145675