On the output criterion for price discrimination

We argue that the output criterion for price discrimination is not robust to the introduction of even arbitrarily small marginal cost differences. However, welfare improvements can be validly assessed by replacing it with the computation of well-known price indexes which are not informatively more demanding.

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Year of publication:	2009
Authors:	Bertoletti, Paolo
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 29.2009, 4, p. 2951-2956
Publisher:	AccessEcon
Subject:	third-degree price discrimination \| uniform pricing \| price indexes

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	D4 - Market Structure and Pricing ; D1 - Household Behavior and Family Economics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008563021