Friday, January 6, 2012
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.