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Price discrimination in asymmetric Cournot oligopoly

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  • Bakó, Barna
  • Kálecz-Simon, András

Abstract

In this article we examine the effects of third degree price discrimination in asymmetric Cournot oligopolies. We show that the average price is not affected by the extent of price discrimination. We find that the asymmetry between firms is reflected only by the output produced for the lowest-valuation consumers and firms produce equal quantities to the other consumer groups.

Suggested Citation

  • Bakó, Barna & Kálecz-Simon, András, 2012. "Price discrimination in asymmetric Cournot oligopoly," Economics Letters, Elsevier, vol. 116(3), pages 301-303.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:301-303
    DOI: 10.1016/j.econlet.2012.03.016
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    References listed on IDEAS

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    1. Hazledine, Tim, 2006. "Price discrimination in Cournot-Nash oligopoly," Economics Letters, Elsevier, vol. 93(3), pages 413-420, December.
    2. Justin P. Johnson & David P. Myatt, 2006. "Multiproduct Cournot oligopoly," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 583-601, September.
    3. Stole, Lars A., 2007. "Price Discrimination and Competition," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 34, pages 2221-2299, Elsevier.
    4. Levent Kutlu, 2009. "Price Discrimination In Stackelberg Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 57(2), pages 364-364, June.
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    Citations

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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; Cournot oligopoly; Price discrimination;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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