Title
|
|
|
|
Bertrand competition with an asymmetric no-discrimination constraint
| |
Author
|
|
|
|
| |
Abstract
|
|
|
|
We study the competitive and welfare consequences when only one firm must commit to uniform pricing while the competitor's pricing policy is left unconstrained. The asymmetric no-discrimination constraint prohibits both behaviour-based price discrimination within the competitive segment and third-degree price discrimination across the monopolistic and competitive segments. We find that an asymmetric no-discrimination constraint only leads to higher profits for the unconstrained firm if the monopolistic segment is large enough. Therefore, a regulatory policy objective of encouraging entry is not served by an asymmetric no-discrimination constraint if the monopolistic segment is small. Only when the monopolistic segment is small and rivalry exists in the competitive segment does the asymmetric no-discrimination constraint enhance welfare. |
| |
Language
|
|
|
|
English
| |
Source (series)
|
|
|
|
Research paper / UA, Faculty of Applied Economics ; 2012:006
| |
Publication
|
|
|
|
Antwerp
:
UA
,
2012
| |
Volume/pages
|
|
|
|
23 p.
| |
Full text (open access)
|
|
|
|
| |
|