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Hiroshi Aiura
''Wholesale price discrimination and enforcement of regulation''
( 2010, Vol. 30 No.3 )
The present paper studied third-degree price discrimination in wholesale markets and its welfare property when a monopolistic manufacturer sells his/her products to two retailers who have different qualities and costs of sales. Our results revealed that price discrimination within a certain extent increases social welfare under some conditions, which would support the soft enforcement of prohibiting price discrimination by a monopolistic wholesaler.
Keywords: Third-degree price discrimination, Price competition with vertical differentiation, Upstream-Downstream relationships
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
K2 - Regulation and Business Law: General
Manuscript Received : Apr 02 2010 Manuscript Accepted : Aug 12 2010

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