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Price Discrimination with Producer & Consumer Transaction Costs

Author

Listed:
  • Gregory M Randolph

    (Southern New Hampshire University)

Abstract

This paper examines the impact of transaction costs on the social efficiency of first-degree price discrimination. Price discrimination requires the producer to expend resources and compels consumers to incur costs. The consideration of producer and consumer transaction costs alters the conditions under which first degree price discrimination enhances social welfare.

Suggested Citation

  • Gregory M Randolph, 2012. "Price Discrimination with Producer & Consumer Transaction Costs," Economics Bulletin, AccessEcon, vol. 32(1), pages 370-375.
    • Handle: RePEc:ebl:ecbull:eb-11-00821
    as

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    References listed on IDEAS

    as
    1. V. Bhaskar & Ted To, 2004. "Is Perfect Price Discrimination Really Efficient? An Analysis of Free Entry," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 762-776, Winter.
    2. Blundell,Richard & Newey,Whitney K. & Persson,Torsten (ed.), 2006. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521871525, October.
    3. Armstrong, Mark, 2006. "Price discrimination," MPRA Paper 4693, University Library of Munich, Germany.
    4. Leeson, Peter T. & Sobel, Russell S., 2008. "Costly price discrimination," Economics Letters, Elsevier, vol. 99(1), pages 206-208, April.
    5. Blundell,Richard & Newey,Whitney K. & Persson,Torsten (ed.), 2006. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521692083, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Price Discrimination; Social Welfare; Transaction Costs;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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