Price discrimination and investment incentives

B-Tier
Journal: International Journal of Industrial Organization
Year: 2012
Volume: 30
Issue: 6
Pages: 615-623

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine a model of a monopolist selling to two segments of consumers with different preferences for quality. We show that if the firm is unable to price discriminate between the segments, then there is less investment in quality. We find that both consumer segments, and society overall, may suffer if the firm is unable to price discriminate. We extend the model to duopoly competition, and find that our results still hold.

Technical Details

RePEc Handle
repec:eee:indorg:v:30:y:2012:i:6:p:615-623
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-24