Discussion Paper
No. 2019-50 |
September 26, 2019
Oligopoly price discrimination, competitive pressure and total output
Abstract
This paper extends the traditional analysis of the output effect under monopoly (third-degree) price discrimination to a multimarket oligopoly. The author shows that under oligopoly price discrimination, differences in competitive pressure, measured by the number of firms, across markets are more important than the relative demand curvature when determining the effect on total output.
Comments and Questions