Technology Choice and Third Degree Price Discrimination in a Monopoly

This paper studies technology choice as a relevant aspect to be considered when analyzing price discrimination and welfare. Our results reinforce the traditional wisdom that an increase in output is a necessary condition for price discrimination to improve social welfare. But we also find that the p...

Descripción completa

Detalles Bibliográficos
Autores: Galera, F. (Francisco)|||/items/f3784277-024b-4d85-9b97-26e36c8599d4, Álvarez-Arce, J.L. (José Luis)|||/items/4af53f9f-1564-4e1b-9c89-b94581b8b184, Molero, J.C. (Juan Carlos)|||/items/23f5fe04-faa3-4446-b788-16fe7502227d
Tipo de recurso: artículo
Fecha de publicación:2012
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/43134
Acceso en línea:https://hdl.handle.net/10171/43134
Access Level:acceso abierto
Palabra clave:Materias Investigacion::Economía y Empresa
Monopoly
Technology choice
Third degree price discrimination
Descripción
Sumario:This paper studies technology choice as a relevant aspect to be considered when analyzing price discrimination and welfare. Our results reinforce the traditional wisdom that an increase in output is a necessary condition for price discrimination to improve social welfare. But we also find that the positive output effect does not need to be as large as previously supposed since, under some conditions, the monopoly will move to a socially preferred technology only if third-degree price discrimination is allowed.