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Arijit Mukherjee
''Price discrimination in oligopoly with asymmetric firms''
( 2010, Vol. 30 No.4 )
Kutlu (2009, “Price discrimination in Stackelberg competition”, Journal of Industrial Economics) shows that the Stackelberg leader sells to the highest value consumers and only the Stackelberg follower practises price discrimination. We show that this result is not robust if the marginal cost of the leader is lower than that of the follower. In this situation, both the leader and the follower practise price discrimination.
Keywords: Cost asymmetry; Price discrimination; Stackelberg competition
JEL: D4 - Market Structure and Pricing: General
Manuscript Received : Aug 12 2010 Manuscript Accepted : Oct 10 2010

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