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Price discrimination in oligopoly with asymmetric firms

Author

Listed:
  • Arijit Mukherjee

    (University of Nottingham)

Abstract

Kutlu (2009, “Price discrimination in Stackelberg competition”, Journal of Industrial Economics) shows that the Stackelberg leader sells to the highest value consumers and only the Stackelberg follower practises price discrimination. We show that this result is not robust if the marginal cost of the leader is lower than that of the follower. In this situation, both the leader and the follower practise price discrimination.

Suggested Citation

  • Arijit Mukherjee, 2010. "Price discrimination in oligopoly with asymmetric firms," Economics Bulletin, AccessEcon, vol. 30(4), pages 2668-2670.
    • Handle: RePEc:ebl:ecbull:eb-10-00497
    as

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    References listed on IDEAS

    as
    1. Levent Kutlu, 2009. "Price Discrimination In Stackelberg Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 57(2), pages 364-364, June.
    2. Armstrong, Mark, 2006. "Price discrimination," MPRA Paper 4693, University Library of Munich, Germany.
    3. Hazledine, Tim, 2006. "Price discrimination in Cournot-Nash oligopoly," Economics Letters, Elsevier, vol. 93(3), pages 413-420, December.
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    Cited by:

    1. Kutlu, Levent, 2012. "Price discrimination in Cournot competition," Economics Letters, Elsevier, vol. 117(3), pages 540-543.
    2. Levent Kutlu, 2017. "A conduct parameter model of price discrimination," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(5), pages 530-536, November.

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    More about this item

    Keywords

    Cost asymmetry; Price discrimination; Stackelberg competition;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L0 - Industrial Organization - - General

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