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- W3125172879 abstract "We present a general analysis of third-degree price discrimination in vertical markets. We show that downstream third-degree price discrimination impacts upstream demand, thereby leading the upstream firm to modify its pricing decision which in turn impacts downstream costs. We show this response not only reduces the profitability of downstream third-degree price discrimination, it also means the relative demand curvature condition of Aguirre, Cowan, & Vickers (AER 2010) is no longer sufficient for price discrimination to increase welfare. Numerical experiments indicate the strategic behavior of upstream firms can have a large adverse effect on downstream profits and consumer welfare." @default.
- W3125172879 created "2021-02-01" @default.
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- W3125172879 date "2019-01-01" @default.
- W3125172879 modified "2023-09-27" @default.
- W3125172879 title "Wholesale Market Power and the Limited Profitability of Retail Zone Pricing" @default.
- W3125172879 hasPublicationYear "2019" @default.
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