The paper is concerned with the effects upon competition of most-favored-customer pricing policy. We consider a model where a multimarket incumbent firm faces a threat of entry in one of its two markets. We show that most-favored-customer clauses, or the commitment to uniform pricing, may change...

This paper analyzes how an incumbent's price policy may signal information not only on demand level but also on demand composition. We show that uniform pricing may have advantages over third degree price discrimination when there are informational asymmetries for a monopolist facing threat of...