Welfare-increasing third-degree price discrimination
The welfare and output effects of monopoly third-degree price discrimination are analyzed when inverse demand functions are parallel. Welfare is higher with discrimination than with a uniform price when demand functions are derived from the logistic distribution, and from a more general class of di...
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| Format: | Working paper |
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University of Oxford
2013
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| _version_ | 1797058299803205632 |
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| author | Cowan, S |
| author_facet | Cowan, S |
| author_sort | Cowan, S |
| collection | OXFORD |
| description | The welfare and output effects of monopoly third-degree price discrimination are analyzed when inverse demand functions are parallel. Welfare is higher with discrimination than with a uniform price when demand functions are derived from the logistic distribution, and from a more general class of distributions. The sufficient condition in Varian (1985) for a welfare increase holds for these demand functions. Total output is higher with discrimination for a large set of demand functions including those derived from strictly log-concave distributions with increasing cost pass-through, such as the normal, logistic and extreme value, and standard log-convex demands. |
| first_indexed | 2024-03-06T19:48:30Z |
| format | Working paper |
| id | oxford-uuid:232a5917-128b-407a-966c-8b507d80be27 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T19:48:30Z |
| publishDate | 2013 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:232a5917-128b-407a-966c-8b507d80be272022-03-26T11:42:49ZWelfare-increasing third-degree price discriminationWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:232a5917-128b-407a-966c-8b507d80be27Symplectic ElementsBulk import via SwordUniversity of Oxford2013Cowan, SThe welfare and output effects of monopoly third-degree price discrimination are analyzed when inverse demand functions are parallel. Welfare is higher with discrimination than with a uniform price when demand functions are derived from the logistic distribution, and from a more general class of distributions. The sufficient condition in Varian (1985) for a welfare increase holds for these demand functions. Total output is higher with discrimination for a large set of demand functions including those derived from strictly log-concave distributions with increasing cost pass-through, such as the normal, logistic and extreme value, and standard log-convex demands. |
| spellingShingle | Cowan, S Welfare-increasing third-degree price discrimination |
| title | Welfare-increasing third-degree price discrimination |
| title_full | Welfare-increasing third-degree price discrimination |
| title_fullStr | Welfare-increasing third-degree price discrimination |
| title_full_unstemmed | Welfare-increasing third-degree price discrimination |
| title_short | Welfare-increasing third-degree price discrimination |
| title_sort | welfare increasing third degree price discrimination |
| work_keys_str_mv | AT cowans welfareincreasingthirddegreepricediscrimination |