The Marginal Price Effects of Antitrust Rules Against Price Discrimination
Charles River Associates (CRA)
April 24, 2012
Economics Letters, Vol. 117, No. 3, pp. 921-923, 2012
The two central pricing rules contained in most antirust laws are prohibitions of below-cost pricing and prohibitions of discriminatory pricing. This article shows that the rule against discriminatory pricing may actually induce firms to charge exclusionary below-cost prices, even in the complete absence of any predatory intent on the part of firms.
Number of Pages in PDF File: 9
Keywords: price discrimination, personalized pricing, antitrust pricing rules, non-linear pricing
JEL Classification: K2, L1, L4
Date posted: July 3, 2012 ; Last revised: November 8, 2012
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