Multimarket Competition and Welfare Effects of Price Discrimination

Iñaki Aguirre
IKERLANAK, Working Paper Series IL 55/11.

The paper investigates the effects on welfare of price discrimination when a multimarket seller faces competition in one of its two markets. With respect to uniform pricing, price discrimination changes competition in such a way, that even with linear demands, price discrimination can be welfare improving, both under strategic substitutes and strategic complements.  

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