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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 / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

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Volume 6, Issue 1 (Dec 2006)

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Volume 1 (2001)

A Simple Model of Entry That Increases Price Levels and Price Dispersion

Wen Zhou
  • 1Hong Kong University of Science and Technology,
Published Online: 2006-12-04 | DOI: https://doi.org/10.2202/1538-0637.1647

Abstract

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.

Keywords: entry; price competition; price discrimination; price dispersion

About the article

Published Online: 2006-12-04


Citation Information: Advances in Economic Analysis & Policy, ISSN (Online) 1538-0637, DOI: https://doi.org/10.2202/1538-0637.1647.

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[1]
Eleftherios Zacharias
The Quarterly Review of Economics and Finance, 2009, Volume 49, Number 4, Page 1225

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