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  3. American Economic Review
  4. September 2010
  5. Monopoly Price Discrimination and Demand Curvature

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Monopoly Price Discrimination and Demand Curvature

  • Iñaki Aguirre
  • Simon Cowan
  • John Vickers
American Economic Review
vol. 100, no. 4, September 2010
(pp. 1601–15)
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Abstract

This paper presents a general analysis of the effects of monopolistic third-degree price 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)

Citation

Aguirre, Iñaki, Simon Cowan, and John Vickers. 2010. "Monopoly Price Discrimination and Demand Curvature." American Economic Review, 100 (4): 1601–15. DOI: 10.1257/aer.100.4.1601

JEL Classification

  • D42 Market Structure and Pricing: Monopoly