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dc.contributor.authorHerweg, Fabianen_US
dc.contributor.authorMüller, Danielen_US
dc.date.accessioned2010-04-20en_US
dc.date.accessioned2010-08-17T12:28:18Z-
dc.date.available2010-08-17T12:28:18Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/38805-
dc.description.abstractThe extant theory on price discrimination in input markets takes the structure of the intermediate industry as exogenously given. This paper endogenizes the structure of the intermediate industry and examines the effects of banning third-degree price discrimination on market structure and welfare. We identify situations where banning price discrimination leads to either higher or lower prices for all downstream firms. These findings are driven by the fact that upstream profits are discontinuous due to entry being costly. Moreover, permitting price discrimination fosters entry which in many cases improves welfare. Nevertheless, entry can also reduce welfare because it may lead to a severe inefficiency in production.en_US
dc.language.isoengen_US
dc.publisherGraduate School of Economics Bonnen_US
dc.relation.ispartofseriesBonn econ discussion papers 2010,6en_US
dc.subject.jelD43en_US
dc.subject.jelL11en_US
dc.subject.jelL42en_US
dc.subject.ddc330en_US
dc.subject.keywordEntryen_US
dc.subject.keywordInput Marketsen_US
dc.subject.keywordMarket Structureen_US
dc.subject.keywordPrice Discriminationen_US
dc.subject.keywordVertical Contractingen_US
dc.subject.stwLieferanten-Kunden-Beziehungen_US
dc.subject.stwPreisdifferenzierungen_US
dc.subject.stwVorprodukten_US
dc.subject.stwMarkteintritten_US
dc.subject.stwMarktstrukturen_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwTheorieen_US
dc.titlePrice discrimination in input markets: Downstream entry and welfareen_US
dc.typeWorking Paperen_US
dc.identifier.ppn623964996en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn

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