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Paolo Bertoletti
 
''On the output criterion for price discrimination''
( 2009, Vol. 29 No.4 )
 
 
We argue that the output criterion for price discrimination is not robust to the introduction of even arbitrarily small marginal cost differences. However, welfare improvements can be validly assessed by replacing it with the computation of well-known price indexes which are not informatively more demanding.
 
 
Keywords: third-degree price discrimination, uniform pricing, price indexes
JEL: D4 - Market Structure and Pricing: General
D1 - Household Behavior: General
 
Manuscript Received : Oct 12 2009 Manuscript Accepted : Nov 24 2009

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