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Market Interdependence and Third-Degree Price Discrimination: Comment

Author

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  • Cebula, Richard

Abstract

The purpose of this theoretical note is to develop a model of third-degree price discrimination in which the quantities sold in each market are interdependent. We demonstrate in our mathematical model that in this situation the price differential may be explained not only in terms of price elasticity differentials, as is typically shown to be the case, but also in terms of the market interdependency, which is generally overlooked.

Suggested Citation

  • Cebula, Richard, 1979. "Market Interdependence and Third-Degree Price Discrimination: Comment," MPRA Paper 56738, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56738
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    File URL: https://mpra.ub.uni-muenchen.de/56738/1/MPRA_paper_56738.pdf
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    Citations

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    Cited by:

    1. Arnaud Diemer, 2001. "Discrimination par les prix et concurrence imparfaite, les apports de Joan Robinson," Innovations, De Boeck Université, vol. 14(2), pages 55-65.

    More about this item

    Keywords

    third-degree price discrimination; market interdependence; price differentials;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • D99 - Microeconomics - - Micro-Based Behavioral Economics - - - Other

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