| The Welfare Effects of Third Degree Price Discrimination In Intermediate Good Markets: The Case of Bargaining Contributor(s): Federal Trade Commission (Author) |
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ISBN: 150275178X ISBN-13: 9781502751782 Publisher: Createspace Independent Publishing Platform OUR PRICE: $14.20 Product Type: Paperback Published: October 2014 |
| Additional Information |
| BISAC Categories: - Social Science |
| Physical Information: 0.07" H x 8.5" W x 11" (0.23 lbs) 34 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: This book examines the welfare effects of third degree price discrimination by an intermediate good monopolist selling to downstream firms with bargaining power. One of the downstream firms (the "chain store") may have a greater ability than rivals to integrate backward into the supply of the input. In addition to this outside option, the firms' relative bargaining powers depend on their disagreement profits, bargaining weights, and concession costs. If the chain's integration threat is not a credible outside option, and if downstream firms cannot coordinate their bargaining strategies, then price discrimination reduces input prices to all downstream firms. |