Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Monday, November 15, 2010

Competition and cost pass-through in differentiated oligopolies

Posted by D. Daniel Sokol

Iñaki Aguirre (Departamento de Fundamentos del Análisis Económico I, University of the Basque Country), Simon Cowan (Department of Economics, University of Oxford), and John Vickers (All Souls, University of Oxford) analyze Competition and cost pass-through in differentiated oligopolies.

ABSTRACT: This paper presents a general analysis of the effects of monopolistic third-degree price discrimination on welfare and output when all markets are served. Sufficient conditions — involving straightforward comparisons of the curvatures of the direct and inverse demand functions in the different markets — are presented for discrimination to have negative or positive effects on social welfare and output.

http://lawprofessors.typepad.com/antitrustprof_blog/2010/11/competition-and-cost-pass-through-in-differentiated-oligopolies.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0133f5646f4f970b

Listed below are links to weblogs that reference Competition and cost pass-through in differentiated oligopolies:

Comments

Post a comment