This paper introduces a model of third-degree price discrimination where a seller's pricing power is constrained by buyers' outside options. Price uniformity performs more efficiently than discriminatory pricing, as uniform pricing allows weaker buyers to exploit the more attractive outside option of stronger buyers. This mechanism is markedly different from the mechanisms that are at work in case uniform pricing is imposed on an unconstrained monopolist.

Inderst, R., Valletti, T.m. (2009). Third-degree price discrimination with buyer power. THE B.E. JOURNAL OF ECONOMIC ANALYSIS & POLICY, 9(1) [10.2202/1935-1682.2114].

Third-degree price discrimination with buyer power

VALLETTI, TOMMASO MARIA
2009-01-01

Abstract

This paper introduces a model of third-degree price discrimination where a seller's pricing power is constrained by buyers' outside options. Price uniformity performs more efficiently than discriminatory pricing, as uniform pricing allows weaker buyers to exploit the more attractive outside option of stronger buyers. This mechanism is markedly different from the mechanisms that are at work in case uniform pricing is imposed on an unconstrained monopolist.
2009
Pubblicato
Rilevanza internazionale
Articolo
Sì, ma tipo non specificato
Settore SECS-P/01 - ECONOMIA POLITICA
English
Con Impact Factor ISI
price discrimination; uniform pricing
Inderst, R., Valletti, T.m. (2009). Third-degree price discrimination with buyer power. THE B.E. JOURNAL OF ECONOMIC ANALYSIS & POLICY, 9(1) [10.2202/1935-1682.2114].
Inderst, R; Valletti, Tm
Articolo su rivista
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/37055
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 2
  • ???jsp.display-item.citation.isi??? 2
social impact