Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210989 
Year of Publication: 
2020
Series/Report no.: 
Discussion Paper No. 2020/1
Publisher: 
Freie Universität Berlin, School of Business & Economics, Berlin
Abstract: 
This paper studies the welfare effects of wholesale price discrimination between downstream firms operating under different regulatory systems. I model a monopolistic intermediate good market in which production cost differences between downstream firms may be due to regulatory or technological asymmetries. Price discrimination reduces regulatory distortions but may lower productive efficiency. Therefore, price discrimination increases welfare if regulation is the dominant source of cost differences. This provides a novel welfare rationale for exempting wholesale markets from the recent ban on geo-blocking in the EU.
Subjects: 
Price discrimination
Intermediate good markets
International price discrimination
Geo-blocking
JEL: 
D43
L11
L42
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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