Partial price discrimination by an upstream monopolist

Artikel

We analyze third degree price discrimination by an upstream monopolist to a continuum of heterogeneous downstream firms. The novelty of our approach is to recognize that customizing prices may be costly. As a consequence, partial price discrimination arises in equilibrium; in particular,we showthat inefficient downstream firms receive personalized prices whereas efficient firms are charged a uniform price. The extreme cases of complete price discrimination and uniform price arise in our setting as particular cases, depending on the cost of customizing prices.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: SERIEs - Journal of the Spanish Economic Association ; ISSN: 1869-4195 ; Volume: 2 ; Year: 2011 ; Issue: 2 ; Pages: 217-231 ; Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Monopoly; Monopolization Strategies
• Subject: price discrimination ; input markets ; Preisdifferenzierung ; Monopol ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bru, Lluís ; Faulí-Oller, Ramon ; Sandonís, Joel
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2011

Further information

• DOI: doi:10.1007/s13209-010-0030-7
• Handle: http://hdl.handle.net/10419/77802
• Last update: 10.03.2025, 11:43 AM CET