Input price discrimination in the presence of downstream vertical differentiation

• Tipo: Artigo em Revista Científica Internacional
• Data: 2019

Autores

Brito, D (Autor) Outra; Tselekounis, M (Autor) Outra; Helder Vasconcelos (Autor) FEP

Revista

Título: Economics Letters

Vol. 184

ISSN: 0165-1765

Editora: Elsevier

Indexação

ISI Web of Knowledge - 8 Citações

Scopus - 8 Citações

Outras Informações

ID Authenticus: P-00Q-ZMJ

DOI: 10.1016/j.econlet.2019.108622

Abstract (EN): This paper investigates the competitive effects of input price discrimination (IPD) in a setting in which an upstream monopolist produces an essential input supplied to the downstream market where there is competition between two vertically differentiated retailers. Two different input pricing regimes are investigated: (i) the uniform pricing regime, in which third-degree input price discrimination is prohibited; and (ii) a discriminatory pricing regime, under which the upstream monopolist may charge different prices to the two downstream firms. We find that despite favoring the low-quality firm, IPD is welfare enhancing if and only if the quality gap is sufficiently high.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 6