Technology Choice and Third Degree Price Discrimination in a Monopoly
Keywords: 
Materias Investigacion::Economía y Empresa
Monopoly
Technology choice
Third degree price discrimination
Issue Date: 
2012
Citation: 
Galera, F. (Francisco); Álvarez, J. L. (José Luis); Molero, J.C. (Juan Carlos). "Technology Choice and Third Degree Price Discrimination in a Monopoly". En . , 2012,
Abstract
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.

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