Price discrimination boosts welfare without increasing output, changing markets.
The article explores how price discrimination by a monopolist selling inputs affects consumer welfare when downstream producers offer different products. The study shows that price discrimination can actually benefit society, even without increasing total output or entering new markets. This is different from traditional thinking about price discrimination. The impact on consumer satisfaction also varies from what is seen in regular markets. The findings suggest that public policies on input price discrimination need to be reevaluated, as it may not always be harmful and may require different responses depending on the welfare standard.