Year: 1979
Author: Berninghaus, S., Ramser, Hans J.
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 99 (1979), Iss. 4 : pp. 403–421
Abstract
Salop's result that a monopolist should discriminate his buyers by generating an "artificial" price distribution on the market is modified in two important points: Beside necessary conditions for the profitability of a price dispersion which alone are analyzed by Salop, sufficient conditions are given by the authors. Second, it can be shown that Salop's result is valid only under very restrictive assumptions about the distribution of consumer search costs. Consequently, a price dispersion for discriminating uninformed consumers will be rather improbable to be observed.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.99.4.403
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 99 (1979), Iss. 4 : pp. 403–421
Published online: 1979-04
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 19