Antitrust & Competition Policy Blog

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

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Friday, January 6, 2012

Multimarket Competition and Welfare Effects of Price Discrimination

Posted by D. Daniel Sokol

Inaki Aguirre (UPV/EHU) notes Multimarket Competition and Welfare Effects of Price Discrimination.

ABSTRACT: The paper investigates the effects on welfare of price discrimination when a multimarket seller faces competition in one of its two markets. Whit respect to uniform pricing, price discrimination changes competition in such a way, that even with linear demands, price discrimination can be welfare-improving, both under strategic substitutes and strategic complements.

http://lawprofessors.typepad.com/antitrustprof_blog/2012/01/multimarket-competition-and-welfare-effects-of-price-discrimination.html

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