| Author: | Corts, K. S. |
| Title: | Third-degree price discrimination in oligopoly: All-out competition and strategic commitment |
| Journal: | RAND Journal of Economics
1998 : SUMMER, VOL. 29:2, p. 306-323 |
| Index terms: | OLIGOPOLY PRICE DISCRIMINATION COMPETITION STRATEGIC PLANNING |
| Freeterms: | STRATEGIC COMMITMENT |
| Language: | eng |
| Abstract: | Competitive price discrimination may intensify competition by giving companies more weapons with which to wage their war. The escalation of competition may make firms worse off, and firms may wish to avoid the discriminatory outcome. Under conditions similar to those in which unambigious price and welfare effects may arise, unilateral commitments not to price discriminate - including the adoption of everyday low pricing - may raise firm profits by softening price competition. |
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