Behaviour-based price discrimination with elastic demand
Behaviour-based price discrimination is typically analysed in a framework characterised by inelastic demand. This paper provides a first assessment of the role of elastic demand on the competitive effects of behaviour-based price discrimination. Our results show that if demand is elastic enough, beh...
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| Format: | workingPaper |
| Language: | eng |
| Published: |
2012
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| Online Access: | http://hdl.handle.net/1822/21565 |
| Country: | Portugal |
| Oai: | oai:repositorium.sdum.uminho.pt:1822/21565 |
| Summary: | Behaviour-based price discrimination is typically analysed in a framework characterised by inelastic demand. This paper provides a first assessment of the role of elastic demand on the competitive effects of behaviour-based price discrimination. Our results show that if demand is elastic enough, behaviour-based price discrimination leads to demand expansion which has a positive effect on overall welfare. |
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