Econometrica: Nov 1984, Volume 52, Issue 6
Price Discrimination and Monopolistic Competition
https://doi.org/0012-9682(198411)52:6<1453:PDAMC>2.0.CO;2-G
p.
1453-1472
Michael L. Katz
I examine the effects of price discrimination on the equilibrium prices, number of firms, and level of total surplus in a monopolistically competitive market. The main finding is that uniform pricing is more (less) efficient than is price discrimination when the purchases made by the consumers who are discriminated against constitute a small (large) proportion of the total purchases.Log In To View Full Content