It is known that monopolistic third-degree price discrimination decreases aggregate welfare if total output falls. In contrast to Adachi (this Journal, 2002), this note shows that welfare must decrease under price discrimination even if total output remains constant
Bertoletti, P. (2004). A note on third-degree price discrimination and output. JOURNAL OF INDUSTRIAL ECONOMICS, 52(3), 457-460 [10.1111/j.0022-1821.2004.00234.x].
A note on third-degree price discrimination and output
Bertoletti, P
2004
Abstract
It is known that monopolistic third-degree price discrimination decreases aggregate welfare if total output falls. In contrast to Adachi (this Journal, 2002), this note shows that welfare must decrease under price discrimination even if total output remains constant
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