Download This PaperThe Marginal Price Effects of Antitrust Rules Against Price Discrimination
9 Pages Posted: 3 Jul 2012 Last revised: 8 Nov 2012
Date Written: April 24, 2012
Abstract
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.
Keywords: price discrimination, personalized pricing, antitrust pricing rules, non-linear pricing
JEL Classification: K2, L1, L4
Suggested Citation: Suggested Citation
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