Welfare and Output in Third-Degree Price Discrimination: a Note
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WPnull/03 Welfare and Output in Third-Degree Price Discrimination: a Note
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Authors
- Francisco Galera(fgalera@unav.es)
School of Economics and Business Administration, University of Navarra
- Jesús M. Zaratiegui(jmzarati@unav.es)
School of Economics and Business Administration, University of Navarra
Abstract In this note I provide examples to show that, contrary to what is widely believed, when changing from an uniform price to a third-degree price discrimination situation, an improvement in welfare is possible with output reduction, if there is more than one firm.
Classification JEL:D43; D60; L13
Keywords:price discrimination; imperfect competition; welfare
Number of Pages:10
Creation Date:2003-05-01
Number:null/03
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