Quality Differences, Third-Degree Price Discrimination, and Welfare PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Quality Differences, Third-Degree Price Discrimination, and Welfare PDF full book. Access full book title Quality Differences, Third-Degree Price Discrimination, and Welfare by Francisco Galera. Download full books in PDF and EPUB format.
Author: Francisco Galera Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We propose a model with two markets to analyze the welfare implications of price discrimination with quality differences. In each market a local firm that operates in that market only competes against a global firm that operates in both markets. Local firms produce higher-quality goods than the global firm. If the quality levels of the local firms' products are the same, price discrimination is never welfare-decreasing. If they differ, discrimination is welfare-increasing if quantity increases. Because of a positive allocation effect of price discrimination, there are parameter values such that welfare increases while total output decreases with price discrimination.
Author: Francisco Galera Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We propose a model with two markets to analyze the welfare implications of price discrimination with quality differences. In each market a local firm that operates in that market only competes against a global firm that operates in both markets. Local firms produce higher-quality goods than the global firm. If the quality levels of the local firms' products are the same, price discrimination is never welfare-decreasing. If they differ, discrimination is welfare-increasing if quantity increases. Because of a positive allocation effect of price discrimination, there are parameter values such that welfare increases while total output decreases with price discrimination.
Author: Takanori Adachi Publisher: Springer Nature ISBN: 981993205X Category : Business & Economics Languages : en Pages : 85
Book Description
This book provides an updated overview of the recent progress in the theoretical study of third-degree price discrimination. It is a marketing tactic and is said to be present if the unit price is different across different groups of buyers. Its welfare evaluation is often difficult because it entails two countervailing effects: on one hand, it exploits surplus from consumers who have high willingness-to-pay, but on the other hand, it generates gains from trade from consumers who otherwise would not purchase the good. Recognizing this difficulty, we provide new insights on evaluation of third-degree price discrimination in consideration of network effects and vertical product differentiation. Our analysis is particularly useful for the industries related to information and communication technologies (ICT) because these two elements characterize them. Furthermore, we also study the welfare effects of third-degree price discrimination under imperfect competition other than monopoly. At first, it seems that it may complicate the analysis under monopoly. However, we argue that the main thrusts of analysis under monopoly carry over to the case of oligopoly. We also take into account behavioral aspects and their implications for studying third-degree price discrimination. Overall, this book is designed to provide implications for contemporary management and policy issues by advancing theoretical issues in industrial organization.
Author: Babu Nahata Publisher: ISBN: Category : Languages : en Pages : 10
Book Description
This pedagogical note discusses the differences between second and third-degree price discrimination. The comparison uses four important factors, namely, market segmentation, information about consumers, profit maximization and social welfare. The comparison shows that while market segmentation is a prerequsite for third-degree, it is an equilibrium outcome in second-degree price discrimination. The profit maximization problem is unconstrained under third-degree but it is constrained under second-degree. Both deadweight loss and consumer surplus are positive under third-degree, but they both can be zero under second-degree and the social surplus is maximum.
Author: Richard Schmalensee Publisher: North Holland ISBN: Category : Business & Economics Languages : en Pages : 1002
Book Description
Determinants of firm and market organization; Analysis of market behavior; Empirical methods and results; International issues and comparision; government intervention in the Marketplace.
Author: Francisco Galera
Author: Francisco Galera
Author: Takanori Adachi
Author: Babu Nahata
Author: David Arthur Malueg
Author: Richard Schmalensee
Author: Daniel P. O'Brien
Author: Richard Schmalensee
Author: 
Author: Daniel Patrick O'Brien
Author: Simon Cowan