Abstract

http://ssrn.com/abstract=1732399
 
 

References (18)



 


 



Input Price Discrimination When Buyers Operate in Multiple Markets


Anil Arya


Ohio State University (OSU) - Fisher College of Business

Brian Mittendorf


Ohio State University (OSU) - Fisher College of Business

December 24, 2010

The Journal of Industrial Economics, Vol. 58, Issue 4, pp. 846-867, 2010

Abstract:     
This paper revisits third-degree price discrimination when input buyers serve multiple product markets. Such circumstances are prevalent since buyers often use the same input to produce different outputs, and even homogenous outputs are routinely sold through different locations. The typical view is that price discrimination stifles efficiency (and welfare) by resulting in price concessions to less efficient firms. When buyers serve multiple markets, price discrimination leads to price breaks for firms in markets with lower demand. When lower demand markets also have less competition, price discrimination can provide welfare gains by shifting output to less competitive markets.

Number of Pages in PDF File: 22

Accepted Paper Series


Date posted: December 30, 2010  

Suggested Citation

Arya, Anil and Mittendorf, Brian, Input Price Discrimination When Buyers Operate in Multiple Markets (December 24, 2010). The Journal of Industrial Economics, Vol. 58, Issue 4, pp. 846-867, 2010. Available at SSRN: http://ssrn.com/abstract=1732399 or http://dx.doi.org/10.1111/j.1467-6451.2010.00440.x

Contact Information

Anil Arya
Ohio State University (OSU) - Fisher College of Business ( email )
2100 Neil Avenue
Columbus, OH 43210-1144
United States

Brian Mittendorf
Ohio State University (OSU) - Fisher College of Business ( email )
2100 Neil Avenue
Columbus, OH 43210-1144
United States
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References:  18

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