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Monopoly Price Discrimination and Demand Curvature

Resource type
Authors/contributors
Title
Monopoly Price Discrimination and Demand Curvature
Abstract
This paper presents a general analysis of the effects of monopolistic third-degreeprice discrimination on welfare and output when all markets are served. Sufficient conditions — involving straightforward comparisons of the curvatures of the direct and inverse demand functions in the different markets — are presented for discrimination to have negative or positive effects on social welfare and output. (JEL D42)
Publication
American Economic Review
Volume
100
Issue
4
Pages
1601-15
Date
2010-09
Citation
Aguirre, I., Cowan, S., & Vickers, J. (2010). Monopoly Price Discrimination and Demand Curvature. American Economic Review, 100, 1601–1615.
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