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Price discrimination and equilibrium in monopolistic competition
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Price discrimination and equilibrium in monopolistic competition

Author

Listed:
  • MACLEOD, W.B.
  • NORMAN, G.
  • THISSE, Jacques-François

Abstract

Modern theories of monopolistic competition have borrowed extensively from techniques developed in location theory and the theory of spatial pricing. A subject of concern is that there exists no free-entry price-location equilibrium. We demonstrate its existence, provided only that producers are allowed to price discriminate among consumers.
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Suggested Citation

  • MACLEOD, W.B. & NORMAN, G. & THISSE, Jacques-François, 1992. "Price discrimination and equilibrium in monopolistic competition," LIDAM Reprints CORE 1021, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1021
    DOI: 10.1016/S0167-7187(88)80002-X
    Note: In : Market Strategy and Structure, edited by J.M. Alec Gee and George Norman, New York, Harvester, 184-200, 1992
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    References listed on IDEAS

    as
    1. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 217-235.
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    7. Edgar M. Hoover, 1937. "Spatial Price Discrimination," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(3), pages 182-191.
    8. Lederer, Phillip J & Hurter, Arthur P, Jr, 1986. "Competition of Firms: Discriminatory Pricing and Location," Econometrica, Econometric Society, vol. 54(3), pages 623-640, May.
    9. B. Curtis Eaton & Richard G. Lipsey, 1979. "A Comment on Location and Industrial Efficiency with Free Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(3), pages 447-450.
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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables

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