Price Discrimination in Oligopoly: Boosting Profits, Hurting Consumers?
The article examines how different pricing strategies in competitive markets can affect overall welfare. By comparing certain statistics related to pricing and demand, the researchers found that price discrimination can either increase or decrease social welfare. These findings apply to a wide range of market conditions and can be adapted to fit different types of businesses. This approach offers a way to analyze welfare impacts without needing a detailed model of the market structure.