Imperfect Price Discrimination in Oligopoly: Lower Prices, Higher Surplus, Lower Profits
The article explores how different types of price discrimination affect competition in markets with similar products. They look at discrimination based on demand elasticity, brand elasticity, and location. The study finds that demand elasticity discrimination increases total output and benefits consumers, while brand elasticity discrimination reduces output. Spatial discrimination leads to lower prices for all consumers, boosting overall benefits but reducing industry profits.