Input price discrimination, demand forms, and welfare

Abstract: We analyse the effects of input price discrimination in the canonical model where an upstream monopolist sells to downstream firms with various degrees of efficiency. We first recast a series of existing results within our setting, extending previous findings related to discrimination in final-goods markets to the case of discrimination in input markets. Then, we examine the impact of input price discrimination on welfare. A key determinant of the effects of input price discrimination corresponds to the sum of demand curvature and pass-through elasticity. We provide examples relying on derived demands with constant curvature, including demands with constant pass-through rates

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource
Language
Englisch
Notes
The journal of industrial economics. - 70, 4 (2022) , 1033-1057, ISSN: 1467-6451

Classification
Wirtschaft

Event
Veröffentlichung
(where)
Freiburg
(who)
Universität
(when)
2023
Creator
Gaudin, Germain
Lestage, Romain

DOI
10.1111/joie.12306
URN
urn:nbn:de:bsz:25-freidok-2331767
Rights
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
25.03.2025, 1:47 PM CET

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Associated

Time of origin

  • 2023

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