Spatial Price Discrimination in Input Markets with an Endogenous Market Boundary

被引：0
|
作者：
Chin-Sheng Chen
Hong Hwang
机构：
[1] Chinese Culture University,Department of International Trade
[2] National Taiwan University,Department of Economics
来源：
Review of Industrial Organization | 2014年 / 45卷
关键词：
Endogenous market boundary; Input price discrimination ; Spatial price discrimination; Third-degree price discrimination; D4; L1; R3;
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学科分类号：
摘要：
This paper examines the welfare effect of third-degree price discrimination in a vertically related market with one upstream monopolist that sells its input to a continuum of downstream markets. Assume that the market boundary of the monopolist is endogenously determined. It is found that social welfare is necessarily lower under discriminatory than uniform pricing, even if the market area of the former is greater than that of the latter. This finding is contrary to that in the extant literature on price discrimination in final goods markets.
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页码：139 / 152
页数：13
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