- | F. A. Hayek Program F. A. Hayek Program
- | Journal Articles Journal Articles
- |
Costly Price Discrimination
Originally published in Economic Letters
Standard theory neglects that enacting price discrimination is costly to firms. When this costliness is accounted for, perfect price discrimination is often socially inefficient. For pure monopolists it is sometimes socially inefficient. For monopolistic competitors it is always socially inefficient.
Standard theory neglects that enacting price discrimination is costly to firms. When this costliness is accounted for, perfect price discrimination is often socially inefficient. For pure monopolists it is sometimes socially inefficient. For monopolistic competitors it is always socially inefficient.
Read the article at ScienceDirect.
To speak with a scholar or learn more on this topic, visit our contact page.