A BEJEAP Advances article.

Abstract

A monopolist who originally charges a uniform price across all markets may switch to discriminatory pricing upon the entry of a competitor. As a result, intensified competition may lead to more dispersed prices as well as higher prices for some or all consumers.

Submitted: July 18, 2006 · Accepted: November 22, 2006 · Published: December 4, 2006

Originally published in Advances in Economic Analysis & Policy.

Recommended Citation

Zhou, Wen (2006) "A Simple Model of Entry That Increases Price Levels and Price Dispersion," Advances in Economic Analysis & Policy: Vol. 6 : Iss. 1, Article 7.
Available at: http://www.bepress.com/bejeap/advances/vol6/iss1/art7