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Does online third-degree price discrimination improve welfare?

Author

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  • Stefano Colombo

    (Università Cattolica del Sacro Cuore)

Abstract

In a recent article, Guo and Lai (2022) claim that online third-degree price discrimination improves welfare under certain conditions. I argue that, in the same model, the same results can be obtained even if there are only offline firms. Therefore, welfare improvements cannot be imputed to the existence of online competitors.

Suggested Citation

  • Stefano Colombo, 2024. "Does online third-degree price discrimination improve welfare?," Economics Bulletin, AccessEcon, vol. 44(3), pages 1109-1112.
    • Handle: RePEc:ebl:ecbull:eb-24-00207
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    File URL: http://www.accessecon.com/Pubs/EB/2024/Volume44/EB-24-V44-I3-P85.pdf
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    References listed on IDEAS

    as
    1. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    2. Guo, Wen-Chung & Lai, Fu-Chuan, 2022. "Price discrimination under online–offline competition," Economics Letters, Elsevier, vol. 216(C).
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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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