Economics, Econometrics and Finance
4 years ago

Price discrimination ban harms entry and consumer welfare in small markets

1 view
Journal of Industrial Economics
Bertrand Competition with an Asymmetric No‐discrimination Constraint
Jan Bouckaert, Hans Degryse, Theon van Dijk

Paper Summary

Regulators and competition authorities stop big companies from charging different prices to customers to encourage fair competition. This rule can hurt new businesses and make things worse when the market is small.

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