Direct welfare analysis of relative price regulation

Jun 2017 | 828

Authors: John Vickers


 

Abstract

The paper synthesizes and develops the welfare analysis of regulating relative prices, for example price differences, of which banning price discrimination is a special case. Welfare results are derived directly by convexity arguments using functions of welfare levels. The method is also used to obtain results about e¤ects on consumer surplus.

JEL Codes: D42, L12

Keywords: Price discrimination


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