Competitive differential pricing

成果类型:
Article
署名作者:
Chen, Yongmin; Li, Jianpei; Schwartz, Marius
署名单位:
University of Colorado System; University of Colorado Boulder; University of International Business & Economics; Georgetown University
刊物名称:
RAND JOURNAL OF ECONOMICS
ISSN/ISSBN:
0741-6261
DOI:
10.1111/1756-2171.12363
发表日期:
2021
页码:
100-124
关键词:
摘要:
We analyze welfare under differential versus uniform pricing across oligopoly markets that differ in costs of service, and establish general demand conditions for differential pricing by symmetric firms to increase consumer surplus, profit, and total welfare. The analysis reveals why competitive differential pricing is generally beneficial-more than price discrimination-but not always, including why profit may fall, unlike for monopoly. The presence of more competitors tends to enlarge consumers' share of the gain from differential pricing, though profits often still rise. When firms have asymmetric costs, however, profit or consumer surplus can fall even with 'simple' linear demands.
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