The B.E. Journal of Economic Analysis & Policy
Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra
Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Zulehner, Christine / Schirle, Tammy
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A Simple Model of Entry That Increases Price Levels and Price Dispersion
1Hong Kong University of Science and Technology, (email)
Citation Information: Advances in Economic Analysis & Policy. Volume 6, Issue 1, ISSN (Online) 1538-0637, DOI: 10.2202/1538-0637.1647, December 2006
- Published Online:
A monopolist who originally charges a uniform price across all markets may switch to discriminatory pricing upon the entry of a competitor. As a result, intensified competition may lead to more dispersed prices as well as higher prices for some or all consumers.
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