Third-degree price discrimination and consumer surplus
This paper presents simple conditions for monopoly third-degree price discrimination to have negative or positive effects on aggregate consumer surplus. Consumer surplus is often reduced by discrimination, for example when total welfare (consumer surplus and profits) falls. Surplus increases with...
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| Format: | Working paper |
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University of Oxford
2009
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| _version_ | 1797105997131546624 |
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| author | Cowan, S Cowan, S |
| author_facet | Cowan, S Cowan, S |
| author_sort | Cowan, S |
| collection | OXFORD |
| description | This paper presents simple conditions for monopoly third-degree price discrimination to have negative or positive effects on aggregate consumer surplus. Consumer surplus is often reduced by discrimination, for example when total welfare (consumer surplus and profits) falls. Surplus increases with discrimination, however, in two cases: first, when the marginal revenues without discrimination are close together and inverse demand in the market where the price will fall with discrimination is more convex; second, when inverse demand functions are highly convex and the discriminatory prices are close together. |
| first_indexed | 2024-03-07T06:55:24Z |
| format | Working paper |
| id | oxford-uuid:fdfab926-21c6-4476-9b90-d19432841c55 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T06:55:24Z |
| publishDate | 2009 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:fdfab926-21c6-4476-9b90-d19432841c552022-03-27T13:32:47ZThird-degree price discrimination and consumer surplusWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:fdfab926-21c6-4476-9b90-d19432841c55Symplectic ElementsBulk import via SwordUniversity of Oxford2009Cowan, SCowan, SThis paper presents simple conditions for monopoly third-degree price discrimination to have negative or positive effects on aggregate consumer surplus. Consumer surplus is often reduced by discrimination, for example when total welfare (consumer surplus and profits) falls. Surplus increases with discrimination, however, in two cases: first, when the marginal revenues without discrimination are close together and inverse demand in the market where the price will fall with discrimination is more convex; second, when inverse demand functions are highly convex and the discriminatory prices are close together. |
| spellingShingle | Cowan, S Cowan, S Third-degree price discrimination and consumer surplus |
| title | Third-degree price discrimination and consumer surplus |
| title_full | Third-degree price discrimination and consumer surplus |
| title_fullStr | Third-degree price discrimination and consumer surplus |
| title_full_unstemmed | Third-degree price discrimination and consumer surplus |
| title_short | Third-degree price discrimination and consumer surplus |
| title_sort | third degree price discrimination and consumer surplus |
| work_keys_str_mv | AT cowans thirddegreepricediscriminationandconsumersurplus AT cowans thirddegreepricediscriminationandconsumersurplus |