Input Price Discrimination, Demand Forms, And Welfare

A-Tier
Journal: Journal of Industrial Economics
Year: 2022
Volume: 70
Issue: 4
Pages: 1033-1057

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We analyse the effects of input price discrimination in the canonical model where an upstream monopolist sells to downstream firms with various degrees of efficiency. We first recast a series of existing results within our setting, extending previous findings related to discrimination in final‐goods markets to the case of discrimination in input markets. Then, we examine the impact of input price discrimination on welfare. A key determinant of the effects of input price discrimination corresponds to the sum of demand curvature and pass‐through elasticity. We provide examples relying on derived demands with constant curvature, including demands with constant pass‐through rates.

Technical Details

RePEc Handle
repec:bla:jindec:v:70:y:2022:i:4:p:1033-1057
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25