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Welfare Effects of Third-Degree Price Discrimination: Ippolito Meets Schmalensee and Varian

Authors :
Fundamentos del análisis económico I
Ekonomia analisiaren oinarriak I
Aguirre Pérez, Iñaki
Fundamentos del análisis económico I
Ekonomia analisiaren oinarriak I
Aguirre Pérez, Iñaki
Publication Year :
2011

Abstract

Based on a pioneering work by Ippolito (1980) we construct a simple model wich allows the welfare effects of third-degree price discrimination to be well understood and explained. The decomposition of the change in welfare into a misallocation effect and an output effect has advantages over the well-established analysis by Schamalensee (1981) and Varian (1985). In particular, our approach provides a graphic analysis which clarifies the welfare analysis of third-degree price discrimination.

Details

Database :
OAIster
Notes :
Financial support from Ministerio de Ciencia e Innovación and FEDER (ECO2009- 07939), and from the Departamento de Educación, Universidades e Investigación del Gobierno Vasco (IT-223-07) is gratefully acknowledged., English
Publication Type :
Electronic Resource
Accession number :
edsoai.on1346952710
Document Type :
Electronic Resource