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| Iñaki Aguirre |
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| ''Output and misallocation effects in monopolistic third-degree price discrimination'' |
| ( 2008, Vol. 4 No.11 ) |
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| This paper shows how the welfare effects of third-degree price discrimination may be decomposed into two effects: a misallocation effect and an output effect. It also presents a geometrical analysis which shows how the welfare properties of third-degree price discrimination must be assessed using nonlinear demands, and hence how linear demands are not suitable for the analysis. |
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| Keywords: Welfare |
JEL: D4 - Market Structure and Pricing: General
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : Apr 21 2008 | | Manuscript Accepted : Apr 23 2008 |
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