Oligopoly price discrimination and resale price maintenance

Article Abstract:

A three-tiered economic model on price discrimination was developed to assess the nature and mechanism of resale price maintenance in an oligopolistic environment. The proposed framework outlines a retail price ceiling, which allows a manufacturer to establish the first best price range. Although such an approach does not always generate an optimal solution, it has been shown that it yields best welfare even under conditions when output is minimal.

Retail Distribution, Models, Retail trade, Distribution channels, Oligopolies, Resale price maintenance, Price maintenance

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Third-degree price discrimination in oligopoly: all-out competition and strategic commitment

Article Abstract:

Competitive price discrimination may tighten competition resulting to lower prices for all consumers and lower firm profits. This tightening in competition may make firms worse off, making them avoid the discriminatory result. Allowing firms to assign market-specific prices through discrimination shatters the cross-market profit outcome of aggressive price flows that may control price competition when companies are limited to consistent pricing.

Competition (Economics)

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